Birmingham’s city centre office market has a rival, with the announcement today that over the last quarter, lettings at just one building, Fort Dunlop, have nearly equalled the office space let in the entire city centre.
Based within the city fringe, Fort Dunlop has been reinvented by award-winning developer, Urban Splash, as a contemporary office, retail and leisure space. The first tenants moved in last summer and the building held its grand opening ceremony on 1st December 2006.
Since its opening, interest in the building has continued to soar. From January to March 2007, a total of 108,000 sqft has been let at Fort Dunlop, compared to just 129,000 sqft* let in the city centre as a whole. Urban Splash also has a further 90,000 sqft under offer.
As Commercial Agency Surveyor for Urban Splash, Emily Jones has been responsible for lettings at Fort Dunlop, “Fort Dunlop is the only office space of its kind in Birmingham. We thought the combination of the grade A equivalent specification, iconic building and rent from £10psf would be a winner. But even we are surprised that the lettings are close to rivalling the entire city centre.”
Matt Long from DTZ is joint agent on the scheme, “The record lettings at Fort Dunlop have challenged the perception that Birmingham city centre is the only serious office location in the West Midlands. The fact that lettings at the landmark have come close to equalling the entire city centre sends out a clear message that tenants are looking for more than a city centre postcode, More than ever, great value and cutting edge design are way up there on companies’ ‘must have‘ lists.”
Morgan Lovell is one of the many companies that have relocated to Fort Dunlop. The UK’s leading office interior design, fit out and refurbishment specialist was originally located at Solihull Parkway. Julian Lebray is Managing Director with Morgan Lovell, “We first started our office search focussing more upon the city centre, where we explored a number of options. We were drawn, however, to Fort Dunlop. Given that we’re a proponent of great interior design – we had to move somewhere that offers the best design-led office space. Fort Dunlop won hands down. It was the best move we could have made.”
As joint agent with GVA Grimley, George Jennings puts Fort Dunlop’s success down to the fact that companies can’t get enough of a high quality office environment at a rent that is sometimes £20psf less than the city centre, “There’s a growing awareness of the need to reduce overheads, whilst at the same time having offices that reflect well upon your brand.
“The reason that Fort Dunlop is a very popular alternative to the city centre is that it’s the only viable option at this price level. Fort Dunlop provides a new focal point for the city fringe and has injected a new energy into the out of town market.”
Large and small, Fort Dunlop’s tenants span the professional and public spectrum, from architects to designers, accountants to regeneration companies. The common denominator is the excitement that the building’s tenants have at operating from the reinvented landmark.
Formerly based at Aston Waterlinks, civil and structural engineering consultants, Cox Turner Morse, were one of the first tenants to move into Fort Dunlop. As a Director with the company, Dave Copeland had looked at a number of options, including the city centre. “Cox Turner Morse is a progressive company, with a deep heritage, and it seemed fitting that this was reflected in our base. The city centre just didn’t compare for us in terms of price, parking facilities and flexibility of lease.”
Matt Long of DTZ sees the lack of affordable and convenient city centre parking as one of the major reasons why Fort Dunlop shines out, “Connectivity is increasingly key for businesses today. More people need to be on the road visiting suppliers, clients and projects. We know for a fact that Fort Dunlop’s 1,100 car parking spaces, combined with its gateway location has proved a real hit with tenants. The complex’s proximity to the M40, M42, M6, The NEC and Birmingham International Airport and Railway Station was one of the several reasons why businesses choose to relocate to Fort Dunlop.”
In the increasingly competitive commercial world where businesses need to expand and contract with the market, flexibility of lease is a factor for more operations. Ben Thacker of GBR is Joint Agent, “All too often the terms suit landlords more than tenants. The way that property is leased is in many instances unnecessarily complex and restrictive.
“Urban Splash’s tenant-friendly agreement – known officially as the Short Form Lease – is just four pages long. It’s written in plain English and enables occupiers to move into Fort Dunlop easily and quickly. It has proved popular with large and small tenants seeking an accessible route to inspirational space.”
No stranger to standard lease terms, Wavelink Communications, a leading telecommunications company, took advantage of the easy move lease for its new 2,884 square foot office on Fort Dunlop’s second floor. Having signed up just two weeks after they first heard of the lease, Wavelink relocated its 14-strong team from Stourbridge to Fort Dunlop and enjoyed the speed and simplicity with which it moved.
Nathan Cornish is Director for Development at Urban Splash, “Out of town business parks are often seen as soulless places with a number of buildings arranged around a huge site. Fort Dunlop will house over 2,000 office workers under one roof which gives the place a real heartbeat – a kind of vertical business park if you like.
“This footfall means that we also have thriving retail and food offer. You can even sleep here in the hotel! The combination of the retail offer, great design and rents from just £10 per sq ft, is proving lethal in attracting new office tenants. I have to confess, though, that I’m a little surprised with the sheer speed of the lettings."
Having conducted many tours of the building, George Jennings of GVA Grimley is in no doubt as to the value of the independent retail at Fort Dunlop, “The fact that Fort Dunlop’s ground floor is fully let is a definite advantage. Its bar, restaurant, cafés, convenience store and homewares and lifestyle brands provide everything the office worker needs – and more. Added to this, the coming gym, dentist and Funky Monkeys day nursery is an unbeatable offer. Fort Retail Park and Castle Vale Retail Park are only a minute drive or five minute walk away too.”
Commercial Agency Surveyor with Urban Splash, Emily Jones, is providing several viewings a day in order to keep up with interest from potential tenants, “With six floors of 50,000 sqft each dedicated to office space, I never thought I would be in the position of saying that space will soon be running out only six months after our official opening.”
Emily is urging businesses to get in touch sooner rather than later, “Our second and third floors are now fully let and we’re bringing our third and fourth floors to the market early. Given that we have an additional 90,000 sqft under offer, it really is a case of call now to avoid disappointment.”
Adjacent to the M6 and at well over an acre per floor, Fort Dunlop offers the largest floor plates available outside of the M25. Space from 1,000 to 50,000+ square foot is available within the 350,000 square foot development. Occupiers will be able to enjoy the UK’s largest living grass roof and 1,100 car parking spaces, whilst guests can unwind in the retail and leisure on offer - and of course rest their head at night in the new striking hotel extension.
More details on Fort Dunlop can be found at www.fortdunlop.com. More details on Urban Splash can be found at www.urbansplash.co.uk. Lettings are being managed by GVA Grimley on 0121 236 8236, DTZ Debenham Tie Leung on 0121 200 2050, GBR on 0121 616 0500 and Urban Splash on 07000 70 40 40.
1* Birmingham Office Market Forum Quarter 1 2007
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