Sector Focus


Property


Serviced offices – the beginning of the end?


Birmingham-based independent commercial property agency KWB has said that 2019 may mark the beginning of the end for serviced offices in Birmingham. The firm said that demand for


Knights House


sees light of day A new £15m development in Sutton Coldfield – featuring 63 high-quality apartments and a restaurant – has been unveiled. The Knights House


development, at The Parade, includes 12 luxury penthouse apartments in a two-storey roof extension, with views overlooking the town and nearby Sutton Park. Joint venture partners Key


Land Developments and Urban Village have completed the first phase of the dilapidated former office building. Phase two is expected to be


completed in July. There are 28 apartments in phase one and 35 in phase two. The development will also include a small office and a restaurant. Kevin Sharkey, head of Key


Land Developments, said: “Knight’s House is a fantastic, high quality development which is bringing new life to a tired old building. “It’s hugely satisfying to see


what were vacant and dilapidated offices transformed into dozens of exciting new homes right in the heart of Sutton Coldfield town centre. “Investors have already


reserved a number of apartments and we expect the remaining apartments to be very popular with young professionals, first time buyers and landlords as they offer excellent quality in a location which is just a two-minute walk to the train station. “The original building had


seven floors and we have extended it with the addition of two storeys on the roof to accommodate the penthouse apartments. They really are something special and unique in the Sutton Coldfield market.”


• For more news from Sutton, see page 53


80 CHAMBERLINK April 2019


serviced office space was falling, and the average time firms spent in these offices was also tailing off, with the average contract now just six months. This is despite serviced office


accommodation accounting for the largest office deal in Birmingham in 2018, and the sector accounting for 29 per cent of the total take-up of office space last year. KWB’s 2018 Birmingham Office


Market Annual Report that although serviced office space was being taken up by organisations large and small, it was questionable whether all the businesses taking up serviced office space would remain in the city. Malcolm Jones, head of office


agency at KWB, said: “Some of this serviced office space will be taken by the Commonwealth Games which is said to require some 80,000 sq ft, and some will continue to be used by companies


contract in serviced offices has fallen to just six months, and the average length of stay is now around 21 months. “More mature smaller businesses


will undoubtedly continue to prefer traditional three to five year office leases, as serviced office space can prove to be as much as double or possibly three times more expensive per square foot than traditional office space. “By looking at the average


Malcolm Jones: Serviced office sector boom is over


associated with HS2, although as phase one of the project progresses from planning to construction demand may start to tail off. “Start-ups and smaller


businesses looking for flexibility will also continue to use serviced offices. In 2018 Birmingham was once again the top city outside of London in which to start a new business, with 18,590 companies being launched. “However, the average length of


annual take-up of office suites of 5,000 sq ft or under over the past five years, we estimate that only 63,000 sq ft in the last two years may have been absorbed by serviced offices. However, this falls far short of the growth in provision for serviced offices, which may indicate high availability of space in some of these buildings. “Indeed so many operators have


moved into the Birmingham serviced office market in the past two years, it raises the question as to whether they can all succeed, even with the boost some are expected to receive from Commonwealth Games organisations.”


Renovated buildings will have art


Rooftop gardens and a new art and exhibition space are among the renovations being carried out by Bruntwood Works as part of a £50m transformation project in the North and Midlands. The work is the first phase of a


major programme of activity to transform a number of buildings. The first three buildings to


receive a major renovation include the Cornwall Buildings in Birmingham, 111 Piccadilly and Blackfriars in Manchester, with work scheduled to start in June. The programme will then be


rolled out across Bruntwood Works’ regional portfolio, which consists of £937m of assets across Manchester, Cheshire, Liverpool, Leeds and Birmingham. Cornwall Buildings will undergo a significant facelift, including a new reception with breakout areas and ‘collaborative co-working spaces’, in addition to an in-house barista coffee station. A year’s free studio space is also being offered in the basement, as part of its artists in residence programme, which will see a new partnership formed with Birmingham School of Art.


Artists in residence: Suzi Osborn (left) and Joyce Treasure


Students will have the opportunity for their work displayed throughout the building. The first students to move into the building are Joyce Treasure and Suzi Osborn, who were among 25 applicants. During the next 12 months, Joyce


and Suzi will use their residency to create art that reflects the Birmingham of today. Joyce is developing a new body of work ‘Hymns’ – a series of


visionary narratives about being a mother, artist, woman and student in Birmingham. Suzi’s project looks to capture the surfaces of buildings as they are demolished and rebuilt, capturing the city as it changes through redevelopment. They will also receive mentoring


from Grand Union’s curatorial team and be invited to take part in wider Grand Union social and studio events.


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52  |  Page 53  |  Page 54  |  Page 55  |  Page 56  |  Page 57  |  Page 58  |  Page 59  |  Page 60  |  Page 61  |  Page 62  |  Page 63  |  Page 64  |  Page 65  |  Page 66  |  Page 67  |  Page 68  |  Page 69  |  Page 70  |  Page 71  |  Page 72  |  Page 73  |  Page 74  |  Page 75  |  Page 76  |  Page 77  |  Page 78  |  Page 79  |  Page 80  |  Page 81  |  Page 82  |  Page 83  |  Page 84  |  Page 85  |  Page 86  |  Page 87  |  Page 88  |  Page 89  |  Page 90  |  Page 91  |  Page 92  |  Page 93