Out-of-town offices in Birmingham in demandSeptember 18th, 2012 Category: Building Management
More and more businesses are looking to move into office space located outside Birmingham city centre, a new report has revealed.
According to BNP Paribas Real Estate, the take-up of office space beyond the city centre boundaries went up to 401,620 square feet between January and June 2012.
This, it said, is nearly 500 per cent up on the amount recorded in the final six months of 2011.
By contrast, the take-up of office space in the city centre dropped by nearly two-thirds over the same period to 410,445 square feet.
All sorts of factors could be driving this trend, such as the differences in rents, tenancy terms, premises availability and the ease of access.
Nevertheless, the apparent surge in popularity of out-of-town locations among businesses could be set to have many positive knock-on effects elsewhere.
For instance, suppliers and contract cleaners that typically operate in Birmingham city centre might have to get used to travelling more widely and operating over a much larger area.
However, it's worth stressing that this doesn't spell the end of businesses establishing a presence in the heart of the city.
Indeed, estimates from BNP Paribas Real Estate suggest take-up levels are likely to improve in Birmingham city centre over the coming months.
Carole Taylor, spokeswoman for the group, acknowledged the start of the year had been "disappointing", but said enquiries are "slowly picking up" and the deals market is getting better "following the recent signing of Birmingham's first 15,000 and 20,000 square feet lettings this year".
"We also expect an increase in Birmingham's availability level in the second half of 2012," she added.
All this is great news for both the city centre and its surrounding towns and suburbs.
Large cities can often lead to wealth being heavily concentrated in just one area, whereas recent developments could ensure it is more widely spread out.
As a result, businesses across the whole region will hopefully find themselves in a position to thrive and help turn the struggling economy around.