Office space in the centre of Birmingham could soon reach an average rental cost of £30 per square foot, with one expert saying the threshold is “within easy reach”.
Ashley Hancox from the office branch of property firm CBRE made the claims despite his company revealing data which shows that prime rents in the city have seen no change since the end of 2010.
Speaking about the possibility of the city breaking a £28.50 flat-line, he said: “Our historical data shows that rents in Birmingham have peaked, then dropped, then surged back above previous peak levels as a result of a severe shortage of Grade A choice, which is now a very real prospect in the city.
“Landlords have begun to take a harder line: with prime stock depleting they are in a much stronger position and confident enough to reduce incentives. It’s inevitable that rental increases will follow.”
CBRE’s findings also show that prices in Bristol have remained static since 2007, with the average cost stuck at £27.50 per square foot, hline.co.uk reports.
Some UK cities, however, have fared better. Since the recession, headline rents in Aberdeen have risen by £10 to reach £31.50, while Leeds and Edinburgh saw growth of £1 and £1.50 respectively.
According to birminghampost.co.uk, office space in Birmingham reached a peak of £32 per square foot before the economic downturn.
The views expressed in this post are those of the author and are not necessarily those of Qube Global Software. All facts are verified where possible directly by the author.