News - Midlands
Drivers Jonas Deloitte predicts tough office market
Drivers Jonas Deloitte’s research suggests that demand in Birmingham’s office market is likely to remain weak. Its 2010 Office Trends research paper predicts that what demand there is this year will be from government bodies and occupiers with imminent lease expiries or breaks. Current Grade A vacancy levels are in excess of 1 million sq ft, with rental levels forecasted to fall by 3 per cent in the first half of 2010. Prime yields will continue to harden and should reach 5.5 per cent by year end. The research also showed that prime rents fell by £2 in Birmingham during 2009 to £28.00 per sq ft.