National Highways has entered into a notable leasing agreement at Birmingham’s Three Snowhill, marking a significant development in the city’s commercial property landscape.
The government agency, tasked with overseeing England’s major roadways, will occupy nearly 60,000 sq ft in this prestigious location, consolidating its Birmingham operations.
Relocation to Three Snowhill
The biggest office leasing agreement in Birmingham’s prestigious Colmore Business District this year was secured by National Highways. The government office responsible for managing England’s motorways and major roads, is moving from The Cube and Colmore Square to a new centralised headquarters at Three Snowhill. The relocation, set for late 2024, involves a comprehensive ten-year lease covering 58,697 sq ft.
Three Snowhill, a landmark completed in 2020, is a notable presence in Birmingham’s skyline. Owned by M&G Real Estate, the building offers 420,000 sq ft of prime office space. Its location, overlooking Snow Hill station and St Chad’s Cathedral, makes it an attractive hub for businesses seeking convenience and prestige.
Impact on Birmingham’s Real Estate Market
This significant leasing decision marks a rebound for the Birmingham commercial property sector post-COVID. According to property agency Savills, office space uptake in the city reached a record 203,000 sq ft in the first quarter of 2024—the highest level since 2020. Such statistics suggest a reinvigoration of the market.
The thriving market is reflected in rising office rents. Since late 2019, rents in Birmingham have surged by 23%, a trend driven by high demand and scant supply. Forecasts predict a further 13% increase over the next five years, underscoring the city’s growing status as a business hub.
Statements from Stakeholders
Aaron Pope, M&G Real Estate’s portfolio director, commented on the deal, “This significant letting to National Highways underscores Three Snowhill’s premier status within Birmingham’s business landscape.” This reflects the continued strong demand for quality office space in well-positioned buildings.
Steve Cooke, director of estates, services, and facilities at National Highways, emphasised the strategic benefits, noting, “The move will enable us to bring our Birmingham-based teams together under one roof at a convenient location, enabling better collaborative working.” His focus on collaborative and flexible workspaces aligns with broader workplace trends.
BT as Anchor Tenant
Three Snowhill is anchored by BT, which moved its West Midlands operations to the site in 2021. The telecommunications giant occupies a ‘super hub’ covering 283,000 sq ft over 12 of the building’s 17 floors. This consolidation points to a growing trend of major corporations seeking centralised and efficient work environments.
BT’s decision to make Three Snowhill a base for its regional operations highlights the site’s strategic importance. The building’s comprehensive facilities and prime location enhance its appeal to top-tier tenants, supporting its status as a cornerstone of Birmingham’s commercial real estate scene.
Office Amenities and Location
National Highways selected Three Snowhill for its blend of modern amenities and strategic location. The building offers flexible workspace and excellent wellbeing facilities, aligning with contemporary workforce needs. Its proximity to crucial transport links furthers its attractiveness as a business location.
The choice of location is consistent with National Highways’ strategy of creating better, greener, and streamlined workplaces. The move is anticipated to boost employee satisfaction and enhance operational efficiency, key metrics for the organisation’s success.
Market Trends and Future Projections
The Birmingham office market is expected to experience growth, driven by robust transaction activity and investment in infrastructure. Such trends bolster the city’s reputation as a burgeoning business hub and are likely to attract further investment.
Significant infrastructure developments are underway, further enhancing Birmingham’s profile. These include projects to improve connectivity and accommodate the city’s expanding business community. The sustainable growth of the commercial property market is integral to Birmingham’s economic outlook.
Conclusion
The leasing agreement between National Highways and Three Snowhill underscores Birmingham’s growing appeal as a prime location for businesses. It reflects a positive trajectory in the city’s commercial real estate sector, forecasting a sustained period of growth and investment.
This strategic move to Three Snowhill by National Highways not only strengthens its operational base but also signals Birmingham’s growing role as a key business destination in the UK.
