Insider Media Limited

As the year draws to a close, property professionals across the region are assessing the year’s activity and wondering what 2011 will bring. In examining the office market stats, what becomes clear is that 2010 hasn’t been the wash out that perhaps was expected, but what of the coming 12 months?

Take up this year has outperformed the predictions and existing available office accommodation - or slack - represents less than one year’s “good” take up (circa 500,000 sq ft). So in times of austerity when few developers have any plans to start on site, a sensible and pragmatic approach is required from the property sector and landlords in particular.

In a notoriously cyclical sector, the two strongest options for occupiers to consider are either to stay put, encouraged by proactive landlords to remain in their existing space, or alternatively to look at the options to relocate within the city - either into new development or smartly redeveloped accommodation.

Our market intelligence suggests that large businesses, including two well known legal firms, have requirements in the market which they are seeking to fulfil imminently if they cannot be persuaded by proactive landlords to remaining in their existing space.

This is increasingly the approach that we are witnessing from property owners who, bound by internal pressures, are keen to hold onto their existing tenants by offering them better and more attractive deals. But if they are to relocate, taking space in one of the few completed high profile buildings, then “new” office stock will be taken up with, despite Ballymore’s progress at Snowhill, little prospect of development on the horizon.

With little new development proposed, high quality refurbishments are becoming more prevalent as owners seek to maximise their assets and attract potential tenants both within the city and without, particularly seeking to attract the attention of footloose national occupiers in the market. We have already seen a number of refreshed buildings come to the market including Catalyst Capital’s Alpha Tower, Axa’s Temple Point and Bruntwood’s McLaren Building; all of which have implemented collaborative lettings strategies and secured new tenants impressed by this approach alongside an excellent occupational offer.

However, securing this level of national interest must be supported by an overall story and it’s never been more important that we get this right. The launch of Business Birmingham and the approval of the local enterprise partnership (LEP) give a positive focus to renewed efforts to promote the city in 2011 and beyond, under the guidance and experience of Neil Rami and Bridget Blow respectively.

Meanwhile the city’s overall story continues to strengthen with this autumn’s Big City Plan strategy and the city centre transport strategy including the rapid transport vehicle proposals, which will make Birmingham even easier to travel around.

Whatever the future holds for the property sector and the wider professional services sectors, it is clear that occupiers, developers and building owners alike are looking to implement more innovative and flexible approaches to running their businesses and to working together. This can only be a good thing.

Mark Swallow is head of property consultancy Knight Frank's Birmingham office