Government snaps up final space at Birmingham office in five-year deal

Birmingham is now home to a key regional hub for the Government after the final 16,500 sq ft of commercial space at one of its landmark office buildings, B1, was snapped up in a five-year deal agreed with Galliard Homes and Apsley this week.

The deal follows the Government 's initial take up of 48,787 sq ft on a 10-year lease at B1 in the city 's Jewellery Quarter in June last year for the Department for Housing, Communities and Local Government.

At the time of completion, it was the largest deal to be agreed in Birmingham following the UK 's first nationwide lockdown, and was one of the city 's biggest deals of 2020.

Those behind the Jewellery Quarter building, developers Galliard Homes and Apsley House Capital, have now fully let the 92,472 sq ft space, with the Government joining existing occupier, the Birmingham and Solihull Mental Health NHS Foundation Trust.

Property advisors Avison Young and Lambert Smith Hampton acted on both deals.

Chris Duffy, asset management, acquisitions and commercial director at Galliard Homes, said: “Birmingham is an increasingly attractive location for regional hubs outside the capital for both private and public sector organisations. Even against a backdrop of a challenging market, demand is still there and evident through our deal with Government at B1.

“We 're proud that the two deals we 've agreed with Government to get B1 fully let have both been during the covid-19 pandemic, and this is testament to the strong demand for quality and good value space and the wider appeal of the city. ”

George Jennings (pictured), director at Avison Young, said: “This deal highlights the confidence the Government has in Birmingham and its commercial real estate offer. It will no doubt provide assurance to others looking for space that the city is a safe investment for the long term.

“In 2020, while the office market was understandably subdued, Birmingham did some impressive deals, demonstrating the city 's resilience as a business and investment location. As we move towards wider economic recovery, significant deals like this will stimulate the wider market.

“As a return to the office beckons in the months to come, occupiers' needs will evolve and both the city centre and out of town markets in Birmingham are diverse enough to adapt to meet these needs. ”

Alex Tross, director and head of office advisory at Lambert Smith Hampton, said: “Despite challenging market conditions, it 's great to see Galliard Apsley achieve this significant letting with the Government at B1. Getting a decision like this over the line is down to the quality and value of the B1 space, in a core city centre location. ”