2024-02-07-莱坊-UK_Cities_Birmingham_Q4_2023_1页_217kb

Birmingham Office Market Summary - Q4 2023

Key Highlights of Q4 2023:

• Take-up Volume: 240,274 sq ft taken up in the quarter, with Legal Services as the most active occupier.
• Vacancy Rate: Low Grade A vacancy rate of 3.0%, indicating strong demand.
• Prime Rent: Renewed at £42.50 per sq ft over the last 12 months.
• Investor Activity: High demand from UK institutions, private investors, and property companies with yields around 6.50% for some sectors.
• Construction Pipeline: Significant development of 654,000 sq ft under construction for completion between 2024-2026.
• Yield Forecast: Priming yield at 6.50% for city centre spaces, projected to reach 7.25% by Q4 2023.
• Market Outlook: Occupancy demand is strong, with a -43% vacancy trend, while rent prices expected to end the forecast period at £45.00 per sq ft by 2024.