Property
Commercial office market will survive, says expert
The Covid-19 crisis will not damage Birmingham’s commercial office market in the long term, according to a city property expert. Carl Potter (pictured), managing
director of Avison Young’s UK Birmingham office, says all kind of factors will keep the sector thriving – from lonely home workers to the ‘Red Wall’. He said that prior to Covid-19,
the office market had been witnessing a record level of occupier activity and demand, and also investment. He did admit this activity had since gone into ‘temporary suspended animation’ but believes this is only a short term blip. He said: “We are already seeing that businesses are seeking to shore up their cash reserves and balance sheet before they start thinking about investing again in their occupational real estate. On the upside, there is a view that the migration
from London and the South East to the regional cities will accelerate, as occupiers seek to increase their locational diversity and resilience even further. “None of us can predict what the new normal
might look like once this crisis is over, and occupiers might shift in whole or in part towards a greater
reliance on home working. In response, building design will evolve at an even greater pace to provide sustainable, flexible and future proofed space that encourages human interaction, with perhaps more pressure on landlords to deliver a premium level of service much like the hotel market. “Ultimately, the office
environment is a place where people choose to go because it’s uplifting, enjoying the opportunity to socialise. As such, there is a greater appreciation of the vital role played by our offices as the engine of the economy as we
return to our city centres. “From an investor perspective, the short term
impacts have probably been greater. Any purchase requires bank debt, which in turn requires inspections and searches from land registry, which are currently not permitted. “However, the Government is likely to focus on
investment in the regions to keep that ‘Red Wall’ happy, and continue the success of an office investment market that has been strengthening since the mid 90s. Despite challenges, there is a strong likelihood that activity will return with the same vigour.
Sector Focus
Work resumes on housing scheme
Work has resumed on a social housing scheme in Kidderminster after the easing of Covid-19 restrictions. The 48-home site is a former
sports ground and was progressing towards its topping out stage before the Covid-19 crisis struck. Work at the 5.4 acre has now
been resumed by Solihull-based Living Space Housing and its construction partner, Stonewater. When complete, 60 per cent of
the new homes will be available for affordable rent, with the remainder available to buy through Stonewater’s shared ownership scheme. Living Space managing director
Steve Davies said: “Construction work had been moving on at pace here prior to all work being paused when the prime minister announced the lockdown. “This expansive scheme has
driven us to set up the extensive supply chain we now have in place across Living Space’s development portfolio. We are very grateful for the support from our sub- contractors, consultants and the team at Stonewater at this unprecedented time.”
June/July 2020 CHAMBERLINK 63
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