Rent levels crumbling, says LSH report
Rent levels for prime office space in Birmingham city centre have tumbled by nearly 20 per cent in the last four years. That's according to new research from commercial property firm Lambert Smith Hampton (LSH).
LSH’s latest Midlands office market report states that rents for prime city centre office space have fallen to about £27.50 per sq ft.
In 2007 rent levels averaged more than £32.50 per sq ft, said the firm.
Rent levels for prime space outside the city centre have also fallen to an average of £19.50 per sq ft, which is 13 per cent down on their 2007 peak.
The LSH report also suggests that the city will face a shortage of Grade A office space in the coming years as demand outstrips supply.
Ian Kibble, regional director of the Birmingham office of LSH, said: "The office sector in the region has undoubtedly felt the impact of difficult market conditions over the last two years.
"We’ve seen a limited appetite for speculative development, regeneration schemes stalling due to lack of investor confidence and public sector grant support, and an abundance of vacated second-hand stock.
"While take-up of office stock has fallen short of the long term average across the region, supply has remained relatively stable, yet has been largely second-hand space."
