Grade C office space 'in demand'

Office design news from Morgan Lovell

Published on 20-01-2012

Demand for grade C office space is continuing to flourish in cities such as Birmingham, according to a new report.

Research by property consultancy firm DTZ indicates that just over 50% of office stock in the West Midlands city is classed as being of ’poor quality’.

The findings suggest that many of the buildings may benefit from office refurbishment to boost their appeal to tenants.

But with the national figure standing at 70%, Birmingham may have better quality stock on offer than many other areas, DTZ added.

The group looked at office space in Reading, London and Birmingham to find results which represent the UK market as a whole.

DTZ spokesman David Tonks said the figures show that there is "active demand" for grade C space in central Birmingham.

He said: "The combination of cost constraints amongst occupiers and landlords’ willingness to accept lease drafting that insulates tenants from fluctuating property costs has ensured that the occupancy levels in certain city centre grade C buildings has remained largely unaltered over the past few years."

But Mr Tonks warned that many grade C buildings on the outskirts of the city had failed to attract interest from potential tenants.

He said: "The challenge facing the market is to find alternative uses that will remove the remaining grade C buildings from the market supply."

Copyright Press Association 2012