Birmingham office market heats up
Birmingham's office market has gone from being classified a 'cold' investment to a 'warm' one, according to property agent DTZ.
DTZ said the city's continuing take-up of Grade A office supply and limited development in the pipeline meant the medium-term dynamics of the market looked "positive".
The property agent pointed to recent acquisitions in Birmingham by Hinds, Salmon Harvester and Brockton Capital as a demonstration of the market's health.
Nick Allan, senior director in DTZ's Birmingham investment team, said: "The change in the classification of the Birmingham office investment market from COLD to WARM is clearly positive news for investor confidence in the city.
"On the ground, we continue to see strong demand for both prime and good secondary assets as investors seek levels of return which are commonly unachievable in the markets of London and the south east, where both yield compression and rental growth has been significant during the past 18 months or so."
