Birmingham growth in third quarter
Birmingham’s commercial office market has been buoyed by unexpected growth in the third quarter, a survey by commercial real estate brokers Cushman & Wakefield has found.
The study considered variables such as supply and demand, take up and rental levels throughout the first nine months of the year, and found that returns in the third quarter showed significant growth compared to the disappointing figures recorded in the preceding six months.
The take up of office space has almost doubled in the last three months, up from 93,000 sq ft to 170,000 sq ft, following the worst six month return in over a decade.
Scott Rutherford, head of the offices team at Cushman & Wakefield in Birmingham, said: “Vacancy rates are not as bad as they were, and it now seems as if the market is pulling through.
"There remains quiet optimism in the market that this quarter three return is a positive sign of things to come, with probably one or two substantial transactions on the horizon in the final quarter.
Following significant interest from the automotive, technology, media and telecommunications industries, out-of-town take up for commercial property outstripped that of the city in the first six months of 2012 for the first time in 10 years.
Demand has also been driven by non-office related requirements, with three landmark buildings - totalling 195,000 sq ft of commercial space – now dedicated to alternative uses. The Birmingham Exchange buildings and Martineau Place are set to be converted in to hotels, whilst Tame House has been purchased by the Free School Trust.