A government department has signed the largest office letting deal in Birmingham's Colmore Business District so far this year.
National Highways will relocate its teams from The Cube and Colmore Square into a new consolidated base at Three Snowhill at the end of 2024.
The government-owned entity, which is responsible for England's motorways and A roads, has agreed a ten-year lease for 58,697 sq ft of space.
Three Snowhill, which was completed in 2020 and overlooks Snow Hill station and St Chad's Cathedral, has 420,000 sq ft and is owned by M&G Real Estate.
Its anchor tenant is BT which consolidated its West Midlands offices into a new regional 'super hub' in 2021, occupying 283,000 sq ft over 12 floors of the 17-storey building.
This latest deal suggests a rebound in the city's commercial real estate market post-covid after seeing record take up in the first quarter of 2024 of 203,000 sq ft which is the highest since 2020, according to research published by property agency Savills.
Office rents in Birmingham have increased by 23 per cent since the end of 2019 while high demand and limited supply is fuelling predicted further increases of 13 per cent over the next five years.
Aaron Pope, portfolio director of offices asset management at M&G Real Estate, said: "This significant letting to National Highways underscores Three Snowhill's premier status within Birmingham's business landscape and reflects the ongoing demand for high-quality, well-located office space.
"The positive trends we are seeing in the city's commercial real estate market, including robust transaction activity and significant infrastructure investments, continue to enhance its attractiveness as a prime business hub which will help to drive returns for our clients."
"It is essential to us that our staff are happy with their workplace so when our office leases were coming to an end, we worked hard to find the most suitable space available.
"We are delighted that our new home in Birmingham has close transport links, flexible work space and excellent wellbeing facilities.
"This move aligns with our workplace and location strategy to create better, greener and smaller workplaces."
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