Office space demand on the up, says Colliers
Birmingham’s core office market is showing signs of “a real upturn” according to Colliers International. The real estate service said there had been a sharp increase in Grade A office occupation, resulting a drop of office space availability in the city for the first time in just under three years.
According to the latest net stock absorption research from Colliers International, Birmingham’s core office market is showing signs of upturn and has remained positive during the first six months of 2010.
Colliers said that the latest research suggests that healthy levels of absorption are expected to continue up to 2013, in view of the anticipated take-up of space at 5 Brindleyplace. Absorption rates are set to accelerate further with the completion of the Birmingham Development Company’s Cube scheme.
Half-year availability fell for the first time since the second half of 2007, down by over 3 per cent compared to December 2009. Grade A availability also fell, and is now down by 15 per cent half-year on half-year.
David Smeeton, head of Colliers International in Birmingham, said: “There is no doubt that across the range of market data, the news is far more positive than at any time since we began analysing the Birmingham market.
“Strong absorption is being fuelled by the twin drivers of improving demand for office accommodation, coupled with the shortage of new space coming onto the market.”
The Net Absorption Rate is a research benchmark developed by Colliers International to determine the difference between the amount of space let to occupiers, and the new office stock coming to the market.
