The coworking boom in the UK’s second city will continue to grow and tempt more businesses away from London, according to office space firm Headspace Group.
Birmingham’s growth remains solid as the city continues to attract more and more businesses away from the UK capital.
From the relocation of HSBC’s head office back in 2011 to rumours that Birmingham is top of the list for Channel 4’s new home, big firms moving staff outside of London are boosting development in the city.
At the same time, Birmingham continues to lead the way when it comes to start-up growth outside the capital.
Against this backdrop, one area growing exponentially in the city is the number of co-working and flexible workspaces – a trend that, according to Headspace Group, will only attract more businesses to the city.
Jonathan Hausmann, head of marketing & client experience at Headspace, said: “Birmingham already has a huge amount to offer businesses and as the city’s office space evolves from traditional to the modern, flexible, coworking model, this will only make the city more attractive to startups and corporates alike.
“Though there has been a raft of new spaces opening in recent years, in many ways Birmingham’s commercial property market remains quite traditional, which means 5-year leases, with stringent parameters, where tenants are expected to spend a large amount of capital fitting out and redecorating the space to a level that complements their business.
The comments follow Headspace’s announcement that it plans to open a 12,000 square foot workspace in the city centre and reports earlier this year that demand for flexible and coworking space across the UK’s regional cities more than doubled last year, with Manchester and Birmingham enjoying the biggest increases.
Headspace Group will occupy part of a 36,300-foot space being leased (15-year FRI) by parent company BE Offices.
Located on Temple Street in the heart of Birmingham city centre, Somerset House has recently been redeveloped by Circle Property plc. The deal brings Headspace’s portfolio to over 60,000 square feet.
This is the latest expansive move for Headspace, which launched a Manchester space in 2017 and has spaces in London’s Farringdon and Marylebone.
Headspace plans to turn to the site into a work and events hub for local start-ups, scale-ups and entrepreneurs, as well as bigger businesses who are increasingly adopting the coworking model.
A dedicated on-site community team will be responsible for curating social and business events for members, ranging from panel discussions and workshops to yoga and social events.
Jonathan added: “For fast-growing businesses that require maximum flexibility, this just isn’t suitable and that’s true not just for startups and freelancers, but also big corporations who are increasingly adopting a more-savvy use of real estate.
“Our own tenant base includes some major PLCs and it’s been well reported that major companies such as IBM are embracing elements of the coworking model.
“Attitudes towards workspaces have changed rapidly in recent years and more and more businesses are opting for coworking spaces in order to attract the right talent, network and collaborate with other like-minded-businesses in a well-designed, sociable space.”
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