Increased demand for Birmingham offices from the professional services sector reflects improving market sentiment, according to independent property advisors GVA.
Birmingham city centre take-up in the last quarter of 2013 was 149,928 sq ft, according to the Big Nine report, which looks at the UK’s nine largest cities outside London.
The largest deal completed in Birmingham in quarter four was the 33,460 sq ft letting to Legal and General at Bruntwood’s Centre City tower.
Across the nine cities, city centre take-up totalled 1,358,293 sq ft in quarter four, 29 per cent above the five-year quarterly average and highest quarterly take-up since 2010.
The annual total for 2013 was 4.82 million sq ft, the highest for last five years.
Carl Potter, director and head of national offices at GVA, said: “Whilst we have seen the early signs that this market is returning Birmingham is unlikely to see a raft of new development coming forward to meet the growing demand for offices.
“Indeed it is unlikely that there will be more than one new speculative office development completed in the centre of Birmingham until 2017.
“This will provide selective rental growth during 2014 onwards. Already investors are showing more willing to consider an increased exposure to risk where the right levels of return justify it, and this has caused a significant upswing in market sentiment over the past two quarters.
“From an occupational perspective there are now a fairly significant number of deals close to finalisation which suggests that we should see 2014 being even better.”