Highlighting the strengthening central Birmingham office market, lettings are already nearly at 2007’s year-end total – which in turn has out-performed both 2005 and 2006 – according to King Sturge Birmingham‘s head of office agency, Jonathan Carmalt.

It would seem logical that take-up would have been impacted by the global economic conditions.

However, by the end of the second quarter, a raft of significant transactions had taken place, to the delight of Jonathan, and his colleagues on the Birmingham Office Market Forum.

“In the first quarter there were 26 deals to report and a further 35 in the second quarter, way ahead of what might have been predicted in December,” he said.

“The latest figures for the whole of the first half of 2008 show that the 61 transactions represent a total office take up of 587, 000 sq ft, which is only 75,000 sq ft behind the total for the whole of 2007.” he added.

“More new build Grade A space is becoming available than for several years, and I believe 2008 could become Birmingham’s best year since 2002, when Royal Bank of Scotland’s massive pre-let at Brindleyplace sent the annual total to a record-breaking 935,000 sq ft.”

Jonathan says that the positive mood encouraged by the major pre-let at Snowhill - by Wragge & Co - has been underpinned by a series of small and medium-sized deals.

“Ballymore’s signings are fantastic, but no market can rely solely on a handful of high-profile deals. You need to see regular transactions,” he said.

“The Tribunals Service letting - almost 35,000 sq ft at 54 Hagley Road - was the stand-out deal from the public sector in the first half, and we are now seeing further interest from government agencies in such space.”

Jonathan is equally upbeat about the next wave of office schemes coming forward.

“Talking up the market without substance does no-one any good, but the long awaited supply of new build Grade A office stock is now coming on stream. When coupled with the refurbished accommodation available, occupiers now have a real breadth of choice.” he said.

“The Cube, Calthorpe House, 11 Brindleyplace and 45 Church Street are progressing well, and the completion of Carlyle Group‘s Colmore Plaza has filled in that corner of the prime pitch very nicely.

”We are clearly all well aware that the economic conditions remain tough, and that everyone needs to be realistic when negotiating terms, but it is impossible not to be very optimistic for the second half of the year.“