Birmingham Q2 office transactions hit £260m
The level of office transactions in Birmingham was more than £260m in the second quarter of 2011, data from Savills suggests.
Activity was boosted by the sales of The Mailbox, Two Snowhill and 120 Edmund Street, helping to dwarf the £14m of transactions done in the first quarter.
Savills also said investor interest in the city would lead to more speculative developments while a lack of available space will "almost inevitably" cause shortages.
Jonothan Holmes, investment director at Savills, said: "The recent transactions demonstrate investor appetite both within the CBD and the wider central Birmingham office market for letting, development and lease term risk.
"We haven't seen this type of activity outside of the central London office market for some years and it demonstrates the increasing strength of Birmingham as a pre-eminent regional centre.
"Investor interest has been present across all equity types be it core, core plus or opportunity capital. Well we have no evidence of hardening prime yields given the benign benchmarking metrics, if anything we are likely to see marginal yield compression."
