Pictured aove: Jon Hinton

Companies who delay office moves in Birmingham risk higher rents, shorter rent-free periods and limited stock, according to experts at the Birmingham office of national commercial property consultancy Lambert Smith Hampton.

At the current rate of take-up, and with little new office space being built, there will be no new Grade A office space available in three to four years time and very little second hand space, LSH warns.

LSH Senior Surveyor Jon Hinton said, "Companies wanting to move offices in Birmingham are looking at the four million sq ft of space currently available and thinking - wrongly - that they can take their time making a decision. The opposite is true.  Only 750,000 sq ft of that space is Grade A and there is very little new build in the pipeline. If the average yearly take-up of Grade A space continues at 200,000 to 250,000 sq ft, there will be a dearth of new space in the next three to four years."

He added, "If the city centre Enterprise Zone is confirmed, then demand for office space in the city is likely to increase further. The result of this diminishing stock will be that rents will increase, rent-free periods will reduce and those that delay will have to compromise on some of their requirements. There is some very high quality space available at the moment, such as 45 Church Street, Colmore Plaza and Two Colmore Square, but they won't be around for long."

Jon Hinton said that now is the time to take advantage of what stock is available and make a move before the advantages offered by Enterprise Zone status encourage an influx of companies into the city centre looking for space. 

"Property consultants, like LSH, which offer a total relocation service, could save occupiers and would-be occupiers a great deal of money.

He said, "Consultants who offer a total office move package can offer their clients significant benefits over those who choose to go it alone. Through the experience of their agency teams, suitable properties can be identified quickly with the best possible terms for the client's business strategy negotiated, saving them time and money.

"Building surveying teams can also provide help on a variety of matters. For instance they can reduce dilapidations liabilities by negotiating with landlords, they can advise on repairing clauses, and they can help on fit-out and space planning of the new accommodation to ensure it is used as efficiently as possible. Finally ratings experts can advise on business rates liabilities which can account for a large proportion of the total costs of occupying property," he said.