West Midlands Metro tram system HS2 – Curzon Street Station

Tech and digital sector

New Garden Square

Michelin-starred restaurant, Opheem

Cannon Hill Park, Calthorpe Estates

2022 Commonwealth Games

BirminghamAs Birmingham enters a new decade, confidence remains sky high in the UK’s Second City. With a diverse, talented and youthful population, an influx of blue-chip businesses and global events on the horizon, there is plenty to be excited about.

Birmingham is home to 9,000 international companies, more than any UK city outside London, and has seen more jobs created via foreign direct investment than any other region outside the capital.

The city has developed into a key commercial sector for businesses working in a wide variety of sectors including the tech and digital sector, which encompasses over 3,000 businesses generating over £1.3 billion for the local economy.

Major commercial developments throughout the city continue to flourish, including Paradise, Arena Central and Snowhill, while future regeneration sites such as Smithfield, Axis Square, Martineau Galleries and New Garden Square are producing a healthy pipeline for future residential, leisure, retail and commercial development.

Birmingham has also seen several new residential developments, including schemes built for both open-market sale and the Private Rented Sector (PRS). The West Midlands residential market has continued to outperform the majority of the UK in 2019, with house prices rising by 2.7%, a larger increase than any other English region.

Lifestyle

With no shortage of cultural, leisure and entertainment facilities, and over 600 parks and green spaces, there is something to do for everyone – whether you want to experience the buzzing city centre lifestyle or escape for a peaceful walk.

Birmingham was ranked as the best English city outside of the capital in the Mercer Quality of Living Survey in 2019, ranking in the top 50 locations worldwide.

Birmingham’s renowned culinary scene added yet another Michelin-starred restaurant to its ranks, with Opheem bringing the total to six, while the popular Indian eatery Dishoom announced a move to Paradise. This, combined with a vast array of cafes and bars, makes for a thriving and vibrant nightlife scene for visitors and residents alike, no matter the taste.

Major investment is being pumped into the city as it takes to the global stage to host the 2022 Commonwealth Games, which will attract a projected 1.5 billion viewers worldwide. The new athletes village at Perry Barr will help create 1,400 homes and will form the base of a long-term plan to regenerate the area with 5,000 new homes, while several sports facilities will benefit from redevelopment.

Infrastructure

Birmingham lays claim to being one of the most well-connected cities in the UK and continued investment in travel routes and facilities is only strengthening its hand.

HS2 will provide high-speed train services from two new stations at Curzon Street and Birmingham Airport. Once complete, the new routes will provide connections to London in as little as 38 minutes and more frequent services to the North.

The West Midlands Metro tram system added two further stops to its route in 2019 and further works to expand the service to Edgbaston via Broad Street by 2021 are already underway, while plans are also in place to provide improved links to Dudley and Wolverhampton.

Birmingham Airport offers flights to worldwide destinations including New York, Paris and Dubai and saw 13 million passengers pass through its gates in 2019, a number which is expected to grow to 18 million by 2030.

A £200 million investment has been made towards the creation of a new Sprint bus system to connect the West Midlands, with three of a planned seven services scheduled to be operational in time for the start of the Commonwealth Games in 2022.

The West Midlands is set to embrace state-of-the-art 5G technology, allowing for internet speeds up to 10 times quicker than 4G while enabling more devices to be connected to a network and minimising delays in downloading and viewing content.

Availability

Pipeline

*Significant existing and under construction supply:

*Single buildings greater than 50,000 sq ft with a live Detailed Planning Consent or Back to Frame Redevelopment:

Investment

Despite the challenging political climate, transaction volumes remained high in 2019 due to several high value transactions, reinforcing the robust nature of the Birmingham market. £607m transacted across 14 deals in 2019, compared with £420m across 12 deals in 2018. Birmingham remains a key market for UK investors whilst attracting a diverse pool of international capital, illustrated by the sale of Priory Court and The Lewis Building to Middle Eastern investor, Gulf Islamic Investment (GII), for £139m. This transaction represented the largest single office transaction in the UK outside of London in 2019.

Despite the weight of capital targeting the Birmingham office market, the city presents a distinct lack of stock, as existing owners seek to capitalise on the strong market dynamics and rental growth prospects. This is particularly evident at the prime end of the market, where opportunities over the last 12 months have been few and far between. As a result prime yields have held firm at 4.75%.

Notable transactions in 2019 include:

• The £139m sale of Priory Court and The Lewis Building

• The £62m sale of 45 Church Street

• The £49m sale of 120 Edmund Street

• The £190m sale of The Mailbox

• The £38m sale of Eleven Brindleyplace

Take-Up

2019 Highlights

Major Deals

Q1 194,014 sq ft

Q2 320,595 sq ft

Q3 160,593 sq ft

Q4 104,893 sq ft

TOTAL 780,095 sq ft 116 deals

2018 754,129 sq ft 113 deals

2017 1,005,072 sq ft 130 deals

Platform 21 - Secretary of State (GPA) 110,780 sq ft

Six Brindleyplace - WeWork 92,670 sq ft

Louisa Ryland House - WeWork 81,280 sq ft

One Brindleyplace - Commonwealth Games 72,261 sq ft

55 Colmore Row - WeWork 55,092 sq ft

The Colmore Building - Irwin Mitchell 46,750 sq ft

2 Chamberlain Square - DLA Piper 40,277 sq ft

103 Colmore Row 223,000 sq ft

Two Chamberlain Square 127,627 sq ft

Three Snowhill 120,389 sq ft

Baskerville House 56,506 sq ft

Oozells Building, 9 Brindleyplace 36,058 sq ft

1 Newhall Street 34,784 sq ft

The Lewis Building 33,434 sq ft

No. 1 Colmore Square 30,130 sq ft

4 St Philip’s Place 18,355 sq ft

10 Temple Street 17,467 sq ft

11 Brindleyplace 14,316 sq ft

3 Brindleyplace 11,893 sq ft

One & Four Axis Square (two buildings total) 462,500 sq ft

Post & Mail 424,628 sq ft

Rackhams Building 318,708 sq ft

One Centenary Way 280,000 sq ft

8 & 10 Brindleyplace 180,184 sq ft

5 Centenary Square 178,000 sq ft

Enterprise Wharf 120,000 sq ft

Imperial House 60,000 sq ft

5 St Philip’s Place 58,000 sq ft

2019

Annual Totals

*as of 31st January 2020

UK’s first 5G Testing Hub

40% of population

under 25

82,000 students at 5 universities

New Street

busiest train station outside of London

Top regional city for

quality of life

in England

One in seven (13.2%) people moving outside London moved

to the Midlands

£102 BN Regional economy

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MILL

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M6/M42

A45/M42 Birmingham Airport

M5

M5/M42

KENY

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Library ofBirmingham

Utilita ArenaBirmingham

Pavilions

BirminghamChildren’sHospital

Grand Central

New St

Curzon

Birmingham Smitheld

Brindleyplace

Paradise

Arena Central

HUNTLY ROAD

DUCHESS ROAD

B4284 HARBORNE ROAD

B421

7 CA

LTHO

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ROADHIGHFIELD ROAD

WESTBOURNE ROAD

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FRANCIS ROAD

GREENFIELD CR

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ROAD

CARPENTER RD

WELLINGTON ROAD

GOUGH ROADPAKENHAM ROAD

RYLAND ROAD

WOOD VIEW DR

SPRI

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Birmingham Science

Park Aston

LADYWOOD ROAD

HS2

CURZON STREET STATION

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811

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BirminghamOfficeMarket.co.ukFor more information on the above buildings, go to:

103 COLMORE ROW

NO. 1 COLMORE SQUARE

BASKERVILLE HOUSE

10 TEMPLE STREET

THREE SNOWHILL

4 ST. PHILIP’S PLACE

THE LEWIS BUILDING

3 BRINDLEYPLACE

TWO CHAMBERLAIN SQUARE

OOZELLS BUILDING

1 NEWHALL STREET

11 BRINDLEYPLACE

Proposed High Speed 2 Line

Metro

Metro Extension - April 2021

Proposed Eastside Metro Extension

Retail Quarter

Southside

Jewellery Quarter

Westside

Colmore Business District

Edgbaston

Education Zone

Eastside

Gun Quarter

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