P51-60 Prop Offices.Indd 51 12/05/2015 16:20 BIRMINGHAM
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COMMERCIAL PROPERTY ADVERTISEMENT Ian Mercer Partner and head of development REVITALISING TIME TO CAPITALISE ON CONFIDENCE IN THE CITY Wolverhampton is a city undergoing major THE CITIES change and transformation – economically, From east to west, stakeholders across the Midlands are playing socially and culturally. More than £1 billion of public and private to their strengths with investment in buildings across the spectrum. investment has been ploughed into the city to Neil Tagues goes on tour to fi nd out about the latest projects improve schools, homes, retail and leisure facilities, transport links and business premises. Through Building Schools for the Future, £286 million is being invested in secondary schools, while more than £200 million of private investment is helping to enhance the WOLVERHAMPTON city’s retail offer. At The Interchange, more than £22 million THE MARKET new very light rail technology. The centre will has already been invested to create a Commercial activity in Wolverhampton specialise in prototype vehicle design and strategic transport hub for bus and rail connections to and from the city, with is centred on business parks, which still construction, as well as providing research construction underway on 36,000 sq ft of account for a healthy percentage of deals in and development facilities and education to Grade A office space at i10, which has already the professional sector. At Wolverhampton local businesses. As far as education goes, received significant interest from occupiers. Business Park, local surveyor Bulleys has let work on an £18m building for Wolverhamp- The City Council is working extremely hard 4,000 sq ft to the accountancy fi rm Speller ton Business School should be fi nished for to bring forward two key regeneration sites in Metcalfe and 2,000 sq ft to Handelsbanken. September 2015. the city – Westside and Southside – which At Prendiville Offi ce Park, a 7,500 sq ft offi ce could provide significant mixed-use has been sold to an owner-occupier. TRANSPORT & INFRASTRUCTURE opportunities. In September 2013, the council confi rmed Wolverhampton’s got mainline rail and excel- At i54, Jaguar Land Rover’s decision to an investment of up to £10.6m in offi ces and lent motorway links, but needs a multi-modal locate its advanced engine facility at the site has had a major impact on the region. Not shops at Interchange 10, above 12,400 sq ft transport interchange fi t for the expanding only did it represent £355 million of direct of leisure and retail space. The city council region. As part of the Interchange master- investment into the city, it has buoyed the is funding the scheme and its development plan, the council and Neptune are fi nalising manufacturing, industrial and logistics partner Neptune Developments is managing proposals with Network Rail and Virgin Trains sectors. the delivery process. for a new station building and a refurbished/ For companies like JLR, and many others Elsewhere, offi ce space is being recycled. extended car park, to complement Centro’s for that matter, there are numerous business Accommodation will become available in plan for an extension of the Midland Metro. benefits of being based in Wolverhampton, Birch Street, now Carillion has moved its such as a central location, competitive land head offi ce to Carillion House. All 600 staff prices, cheaper rents and lower staffing costs, are now based in the 42,323 sq ft building. SCHEMES TO WATCH to name but a few. INTERCHANGE 10 Capitalising on these benefits and building on the confidence already being shown in the ■ A 36,000 sq ft offi ce building within RENTAL LEVEL city will bring about further investment and Deals on the best quality business parks are the Interchange project being developed regeneration to shape the future of being struck at £16 per sq ft, although locally by Neptune and partners around the Wolverhampton, which in my opinion is there is space for as low as £8 per sq ft. train station. Arranged over three looking very bright. fl oors, it will be constructed to BREEAM THE CASE FOR... Excellent standard Ian Mercer, Partner and head The Black Country’s getting its identity back of development, Bruton Knowles and has secured funding in its Growth Deal WOLVERHAMPTON Tel: 0121 200 1100 for Dudley Advance (an engineering training BUSINESS PARK E: [email protected] centre) and an innovation centre. Plans for an ■ Located at junction 2 of the M54, innovation centre on council-owned site of next to i54, this is the honeypot of the the old Dudley railway station have received local market with all the extras – fi nance under the Growth Deal. The council’s hotel, nursery, health centre. Broadlands partner, Warwick Manufacturing Group, is Wolverhampton is the developer. keen to use the disused railway lines to test insider JUNE 2015 51 K Column .indd 1 11/05/2015 09:40 p51-60 Prop Offices.indd 51 12/05/2015 16:20 BIRMINGHAM ADVERTISEMENT NEW CHALLENGES Ben Thacker is head of Occupier Services at award winning independent property consultancy GBR Phoenix Beard, working with businesses in the West Midlands to find solutions to their office space requirements: “For a number of years office occupiers have been in the ‘driving seat’ when it came to acquiring new office space, but there has been a transformation over the past 12 months as the availability of good quality space has declined rapidly presenting new challenges for companies reviewing their office needs. This lack of supply continues to place acute pressure on the region’s property market resulting in rapidly rising rents and a more robust stance being adopted by landlords. BANKED Two Arena Central, new home for HSBC Whilst identifying and acquiring alternative office premises remains a significant part of what we do, we are increasingly advising occupiers on SPONSORED BY restructuring existing leases in order to remain in their current premises - often well in advance of future lease events. Often occupiers elect to remain in BIRMINGHAM their existing premises and to remodel them. In such instances we are able to advise on the reconfiguration and THE MARKET city’s infrastructure up the way Birmingham refurbishment to improve efficiency and Birmingham is riding high on a wave of is doing has had an impact.” enhance the working environment. Fit significant inward investment decisions. The first quarter of 2015 was the best for out consultancy, design, procurement Following a deal with Deutsche Bank in 2013, take-up in the central Birmingham office and project management services which bought 1,000 jobs to Birmingham – market since 2008, with 129,000 sq ft let. are all core services we offer. Our on top of the 1,000 that were already here Given that the first quarter is traditionally role is all encompassing, dealing with - HSBC has announced that it will move its the slowest of the year, agents are getting building regulations and other statutory requirements, as well as liaising with personal and business banking operations to excited. Stand-out deals include 16,000 sq ft third party contractors and ensuring Birmingham in the largest inward investment to Michael Page at Brindleyplace and wealth the project is delivered on time, as deal in the city for a generation. manager Bellpenny taking 9,000 sq ft at intended and to budget. At least 1,000 people will relocate from Church Street. We have an extensive track record London over the next four years, joining the Deals in the pipeline could include engi- of cradle-to-grave involvement in the 2,500 HSBC employees already in the city. neering group Jacobs, which is rumoured to design, delivery, asset repositioning The bank is in negotiations on a 250-year be close to exchanging contracts at Colmore and disposal of office schemes, both new developments and refurbishments, lease at the 210,000 sq ft Two Arena Central, Square; a deal in solicitors’ hands for 35,000 meaning we are ideally positioned to within the city’s enterprise zone. Work could sq ft at Edgbaston, and a 30,000 sq ft deal advise on delivery and implementation begin in June. in the city centre. GVA’s Charles Toogood of occupational strategy.” Between the two bank deals, HS2 con- says: “On top of the 212,000 sq ft to HSBC, firmed in 2014 that 1,500 staff will be based that could be more than 300,000 sq ft in the at its construction headquarters in Two Sno- quarter in just four deals. By the half-year whill, within 100,000 sq ft of space. we’ll hit the five-year average for a full year.” “The past year or more has been very positive for Birmingham, with the HSBC RENTAL LEVEL news the obvious highlight – it shows the Decent space in a booming market doesn’t Deutsche Bank deal wasn’t an anomaly, but come cheap. As Toogood says: “As supply a sign of things to come,” says Alex Tross, tightens, I expect rental levels to reach Tel: 0121 200 4500 head of office agency for Lambert Smith £32.50 by the end of 2015. The market www.gbrpb.com Hampton in the city. “Clearly, building the has tipped towards landlords. Occupier 52 insider JUNE 2015 BR Phoenix Beard 62813.indd 1 11/05/2015 09:41 p51-60 Prop Offices.indd 52 12/05/2015 16:20 BIRMINGHAM COMMERCIAL PROPERTY confi dence is much improved, we’re seeing more mergers and acquisitions and more SCHEMES TO WATCH companies in expansion mode.” 55 COLMORE ROW ■ Bought by IM Properties in June 2014, this is a 133,677 sq ft redevelopment in the THE CASE FOR..