Small Suites Do Not Suck: Birmingham's Serviced Office Sector Is Not Killing Small Deals
The serviced office boom has not decimated the smaller suite office market in central Birmingham, the latest data shows.
Smaller offices once again formed the majority of transactions in Birmingham city centre and Edgbaston in the second quarter, showing that small businesses remain highly active in the city, and are still keen to sign traditional leases, rather than take serviced office accommodation.
Two-thirds of deals were for less than 3K SF, according to KWB.
“Despite the massive boost in serviced office space in Birmingham city centre of some 200K SF in 2017, and that 94K SF, or 55% of the total space, was let to serviced office operators in the second quarter of 2018, many smaller occupiers still want to have their own space with their own front door, rather than take space in a larger flexible office," KWB Office Agent Ben Voss Wood said.
"It is still possible for landlords to get a good return on capital investment in refurbishing office buildings with smaller suites and offering them on traditional three- to five-year leases.”
Oval Real Estate's Guildhall Buildings is among the beneficiaries, claiming five lettings to SLC Rail, SR Law, Cognition Agency, Quantum Advisory and Hyperscale Group. It is now 80% let.
