TWO FRIARGATE, in Coventry, is one of only few opportunities for new-to-market office space in the region. The Grade A offices are well positioned to benefit from the squeeze in supply.
Leading office agents, Cushman & Wakefield, have warned of a squeeze on the supply of Grade A office space in the Midlands. This is not only driving-up rents across the region but could make it difficult for corporate occupiers to find suitable premises in the near future.
Occupiers with leases set to end in 2024 or 2025, are being urged to look for new space now, to secure an increasingly diminishing supply. Major office schemes such as 103 Colmore Row and Paradise in Birmingham are letting well, whilst future schemes are not yet at delivery stage.
The squeeze is being equally felt across other cities in the Midlands, like Leicester and Nottingham.
With growing demand for city centre locations close to major transport hubs, many businesses are moving away from traditional out-of-town office parks. Access to amenities, a larger pool of skills and more sustainable office space are driving the shift.
David Rigby, Partner at Cushman & Wakefield, said:
“The Midlands has a strong long-term pipeline of office space, but we’re looking at a short to medium term squeeze on new build supply. This is leading to increased rents, which will see further pressure when the next wave of office refurbishments complete, where increased build costs will have been accounted for.”
“New-to-market office space opportunities are being snapped up quickly, so those occupiers looking to move over the next 24 months need to secure space quickly or be forced to compromise on their requirements.
“Put simply, there may not be suitable office space available by the time occupiers are ready to look.”
TWO FRIARGATE in Coventry is one of the region’s few new-to-market opportunities. Set to practically complete soon, the Grade A offices sit immediately adjacent to Coventry Railway Station and are part of a wider masterplan for the Friargate business district.
The building has already achieved a WiredScore Platinum rating and is connected to the city’s District Heating Network, making it exceptionally sustainable.
David continued:
“TWO FRIARGATE is one of the very few new-to-market, Grade A, opportunities in the Midlands outside of Birmingham. It suits businesses already based in Coventry or located in one of the city’s business parks.
“However, increasingly, businesses are looking to relocate from the south-east because of the lack of supply elsewhere. It represents great value for a building with this specification and ESG credentials.
“Having taken a long-term view on the delivery of TWO FRIARGATE, Coventry City Council has positioned the city well to capitalise on the wider squeeze in office space. Coventry has a huge amount to offer as a location and is well connected by road, rail and air. It’s an obvious opportunity to locate and grow a business, with strong access to talent.”
With a range of opportunities available from 5,000 sq ft to 80,000 sq ft, TWO FRIARGATE is set to be a dynamic business community in the heart of Coventry.
To find out more about TWO FRIARGATE’s new Coventry offices, contact Cushman & Wakefield – Scott Rutherford on 07824 436439 or email scott.rutherford@cushwake.com, or David Rigby on 07730 735889 or email david.rigby@cushwake.com.
