Birmingham Net Stock Absorption Autumn 2008

Published: September 2008
Source/Company: Colliers International

Abstract:
Executive Summary
• Net stock absorption of offices was 32,111 sq ft for H1 2008, showing steady
improvement in the Birmingham office market. Year on year absorption stood at
68,348 sq ft.
• Take-up in the first half of 2008 underlined the positive trends with record half year
figures. 572,897 sq ft was transacted more than double the figure for the equivalent
period in 2007.
• The Brindleyplace and Edgbaston submarkets have recorded combined absorption of
93,708 in the past six months (see figure 1) though the City Core recorded negative
absorption in H1 2008 of -118,138 sq ft.
• Overall availability rose by 13% almost entirely off the back of the completion of
Colmore Plaza (307,297 sq ft).
• Marked uplift in demand from existing large occupiers has led to a rise in prime rents.
The current prime is at a record level of £33 psf, representing a rise of 10% since the
start of 2008. Quality office product, so long in short supply in key locations is helping
to drive up occupational costs and stabilise demand.
• In terms of the development pipeline, of the 952,000 sq ft set to complete in the next
18 months some 26% (252,136 sq ft) has already secured tenants.

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