Abundance of small property deals in Birmingham
A lack of large property deals kept office take-up volumes lower in Birmingham city centre in the second quarter of the year. Just 30 per cent of deals made involved more than 5,000 sq ft, according to property expert Jones Lang LaSalle.
The company said government spending cuts, which were implemented earlier this year, pose a risk to the market as the public sector may no longer be able to finance relocations and the consequential job losses will result in surplus office space coming onto the market.
Jones Lang LaSalle’s National Voice research report looks at office leasing markets in Birmingham, Leeds, Manchester, the Western Corridor, Edinburgh and Glasgow.
According to Jones Lang LaSalle’s report, this is already impacting take-up levels. Over the second quarter of 2010, government departments were notably absent in Birmingham and accounted for just 13 per cent of activity across the six main UK markets, compared with 25 per cent during 2009.
Jonathan Fear, head of Jones Lang La Salle’s national office agency team in Birmingham, said: “On a more positive note, as cost reduction will be a priority, this may offer opportunities for good quality product at a lower price. Also, public sector occupiers will be looking to work their space harder and we expect workplace strategies will become increasingly important.”
