City office market booming as demand for quality continues - report

Birmingham 's office market continues to bounce back in 2022, according to strategic real estate advisor Avison Young 's latest Big Nine office market report.

Office take-up has grown nine per cent in the first quarter of the year, totalling 260,444 sq ft.

The continued demand for high-quality stock also shines through, with three quarters (75 per cent) of Q1 deals in the city core being for Grade A space.

The same upward trajectory is being witnessed in the out-of-town market, with a 14 per cent increase.

Both the city and out-of-town results for Q1 2022 represent some of the strongest results achieved in Birmingham since before the pandemic.

Notable Q1 deals include the debut of established co-working provider, Cubo Work in Birmingham with 24,300 sq ft of space at Two Chamberlain Square, while the Government continues to grow its presence in the city.

The Office of the Public Guardian signed an agreement for 27,000 sq ft space in the city's Victoria Square House, and last year, the Department for Work and Pensions acquired the remainder of space at the B1 building in the Jewellery Quarter where it now occupies 65,000 sq ft.

Carl Potter (pictured), principal and managing director of the Birmingham office at Avison Young, said: “Birmingham continues to prove its resilience, with increasing confidence in the market shining through in Q1 this year.

“Beyond the volume and uptick in activity, the demand for Grade A space continues, and we 're pleased to see Birmingham responding to this with a healthy supply of quality options coming through now and later this year.

“Both new and existing investors are staking their claim in the city, and if this upward trajectory continues as predicted, 2022 will be a very positive year for Birmingham. ”

The performance of Birmingham 's out-of-town market is also strong, totalling 85,183 sq ft in Q1 this year, up 14 per cent when compared to the final quarter of 2021.

A major Government deal at Birmingham Business Park contributed heavily to this healthy performance, marking the largest deal at the park for more than two decades.

Read Avison Young 's full Q1 2022 Big Nine office market report.