A new letting deal has been agreed with the Government for the remaining vacant space at a Birmingham office block.
A regional hub for use by the Department for Work and Pensions and the NHS will be established at the B1 building in the Jewellery Quarter after a five-year deal was secured for the remaining 16,500 sq ft.
It follows a deal signed last June between landlords Galliard Homes and Apsley House Capital and the Ministry of Housing, Communities and Local Government Government for 48,787 sq ft of space for ten years.
The 92,472 sq ft building, at the corner of Summer Hill Road and Icknield Street, is also home to the Birmingham and Solihull Mental Health NHS Foundation Trust.
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Chris Duffy, asset management, acquisitions and commercial director at Galliard Homes, said: “Birmingham is an increasingly attractive location for regional hubs outside the capital for both private and public sector organisations.
“Even against a backdrop of a challenging market, demand is still there and evident through our deal with the Government at B1.
“We’re proud the two deals we’ve agreed to get B1 fully let have both been during the covid-19 pandemic and this is testament to the strong demand for quality and good value space and the wider appeal of the city.”
Property consultancies Avison Young and Lambert Smith Hampton acted on both deals.
George Jennings, director at Avison Young, said: “This deal highlights the confidence the Government has in Birmingham and its commercial real estate offer.
“It will no doubt provide assurance to others looking for space that the city is a safe investment for the long term.
“In 2020, while the office market was understandably subdued, Birmingham did some impressive deals, demonstrating the city’s resilience as a business and investment location.
“As we move towards wider economic recovery, significant deals like this will stimulate the wider market.
“As a return to the office beckons in the months to come, occupiers’ needs will evolve and both the city centre and out of town markets in Birmingham are diverse enough to adapt to meet these needs.”