Birmingham prime office rents tumble
The latest research into the market for available office space to let in Birmingham shows that rents have fallen nearly 20% for prime offices in the city centre during the past four years, says the Birmingham Post. The paper reports data from Lambert Smith Hampton saying that average prime city-centre office space rents have tumbled to around £27.50 per sq ft from more than £32.50 per sq ft in 2007. Outside the city centre, rents have fallen 13% during the same period, to an average of £19.50 per sq ft,
LSH’s Midlands office market report also says that demand for better quality second-hand office space is set to rise in Birmingham, with expected new development of Grade A space very limited. The Birmingham Post quotes Ian Kibble, regional director of LSH’s Birmingham office, as saying that take-up has been below the long-term average across the Midlands but the steady take-up of Grade A space has fuelled fears of a two-tier market.
However, he said that the granting of Enterprise Zone status for the city centre could lead to “much-needed investment” and could restart some stalled regeneration schemes. He also said that despite banks’ reluctance to raise their exposure to commercial property, it is still possible to find finance as new funders are entering the market.
