It has been reported that JLL have been appointed to begin a search for 350,000 sq ft of office space in Birmingham on behalf of an unknown client.
If completed, the deal will be one of the largest single transactions the city has ever seen and would be almost be 50 per cent of the total let in the city during 2014.
JLL plans to acquire 175,000 sq ft by the end of this year and another 175,000 sq ft by the end of next year.
There are currently few potential locations for a deal of this size. The limited possibilities include Baskerville House, which will have 130,000 sq ft available once the refurbishment is completed this summer, along with Colmore Plaza and Colmore Square.
Birmingham is becoming a hotspot for businesses and investors, with CBRE’s global Prime Office Occupancy Costs survey saying that it was Britain’s best value city to do business in and the most investable city, putting it above Manchester and London.
A senior director in CBRE’s national offices team, Ashley Hancox, said “Our research shows that the gap between prime peak rents prior to the recession and now is wider in Birmingham than any other UK city, making us the best value for money at present”.
Mr Hancox went on to say that this won’t be the case for long, as there is a lack of Grade A office space available, therefore incentives have taken a hit, with rent free periods “visibly compressing”.
Some sources suggest that HSBC could be the mystery firm. This would make sense as they have consolidation plans and have been looking at opening offices at Arena Central.
Story: Chris Grigorovsky
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