According to the latest Birmingham office market bulletin from international real estate advisor Savills, take up figures in the prime core office market could reach 450,000 sq ft (41,806 sq m) by the end of 2011, which would be the highest recorded since 2008. 

Nick Williams, director of offices at Savills, comments: "Take up figures so far this year are up 23% on the same time in 2010. With two significant lettings in the last quarter of the year to accountants Grant Thornton and The Law Society, we anticipate that we will exceed 2010 numbers by up to 40%. Whilst the market remains highly challenging, the supply demand dynamic is changing and this will start to impact on deal structure."

The firm states that the lack of development pipeline continues to have an effect on the supply of grade A space, accounting for only 52% of total supply in Q3 (down from 66% at the end of 2009). The lack of development is also helping to push the vacancy rate down from its peak of 17.6% at the end of 2009 to 15.7% at the end of the third quarter in 2011. 

Savills reports that prime rents have remained consistent at £28.50 throughout 2011.

Nick continues: "Despite ongoing economic uncertainty, the Birmingham office market has shown clear signs of recovery and whilst we don't anticipate any drastic upturn in 2012 we are of the view that next year will see a shift in market balance as stock levels, particularly Grade A, start to limit options and landlord flexibility."