Birmingham is leading the way in the UK for vacant commercial property space to be converted into new homes, according to a new report by property consultancy Lambert Smith Hampton (LSH).
The report highlights that 7.4 million sq ft of commercial space in the city can be converted into 11,500 new homes soon, meaning that Birmingham is the city in the UK that has the most potential for office-to-home conversions. Edinburgh followed in second place whilst Nottingham completed the top three. In total, 32 markets were analysed by LSH, with Slough and Manchester also topping the bill.
Looking particularly at Birmingham, the report saw that 27 per cent of the commercial space in the region (11.7 million sq ft) was vacant, and out of this lot, 7.4 million sq ft was suitable to be converted. Furthermore, these new houses would actually help contribute 25 per cent of the total new homes that had been promised for the area by deputy prime minister Nick Clegg.
Regional director of office agency Ian Leather said: “Modern workplace trends have changed office occupier’s requirements – they need flexible, open plan space and, crucially, less of it. In the last 20 years, the amount of allocated space per person in an average UK office has halved.
"Office occupier requirements will continue in this vein, meaning any stock that does not meet modern workplace trends is unlikely to ever be let again and while not every obsolete building can be converted, a fair proportion could be.”
This new research, published in 'Office Market Review 2013: Addressing Obsolescence', was revealed at a special conference that was hosted by LSH at the Birmingham office. Over 80 industrial professionals from across the wider region attended the event.