The number of business taking serviced offices in Birmingham city centre has increased by a fifth compared to the same time last year, according to new research.
Demand in the first two months of 2013 was fuelled by the need for flexible office space and a reluctance to invest long term in property, according to data from Tamworth based Officebroker.com.
And the number of desks required by companies has doubled from four to eight when compared to the first two months of 2012.
Companies are also committing for longer when compared to last year with initial licence periods increasing from eight months to ten.
Increased interest and take up has seen rental prices rise across the 25 serviced offices in the city centre, from £210 a month up to £242 per desk, per month.
This places Birmingham above the national average, excluding central London, of £223 per desk per month.
Chris Meredith, chief executive at Officebroker.com, said: “Compared to other UK cities, Birmingham appears to be performing well and it’s encouraging to see positive indicators of growth.
“We have seen a rise in rental costs due to on-going demand and healthy occupancy levels.
“What I believe this data shows, is that Birmingham is a place where companies want to do business and the consistent growth and progress in this important section of the property market over the last 12 months is likely to continue in 2013.”
The report also revealed larger businesses are making use of flexible office space in the city.