Brum's office sector will weather Brexit storm, says M&G
The study reveals that the market appears more resilient given Grade-A availability is very low and there is limited new supply of high quality, modern office accommodation coming online in the short-term – with office take-up being driven by domestic demand which has proven surprisingly buoyant.
M&G Real Estate believes the relative merits of Birmingham’s office market – demographics (population, size and growth), connectivity, quality of workforce, global university rankings, innovation – factors which will shape the local urban economy and influence occupier demand, will not materially change in the wake of Brexit.
M&G Real Estate reports that Birmingham, along with Manchester and Reading, is moving ahead of the rest – helped by strong and improving transport infrastructure including HS2, a young educated workforce and government support.
Aaron Pope, director, asset management at M&G Real Estate, said: “Birmingham’s office market appears to be in a much better position than we were expecting last year and we now look to the future from a position of relative strength. However, it is clear that there are definite and significant headwinds in place that may affect the market over the next two years.”
M&G Real Estate’s Birmingham’s office portfolio includes Three Snowhill, the £200m, 420,000 sq ft office development in Birmingham city centre – the largest speculative office development being constructed outside of London and which is scheduled to complete in early 2019.
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Published: 21 February 2017