WeWork eyes 6 Brindleyplace for Birmingham debut

WeWork is in advanced discussions to take over the lease of 6 Brindleyplace, Birmingham, from the Royal Bank of Scotland. The flexible workspace giant has identified the 97,000 sq ft office space for its much-anticipated Birmingham launch. It is currently negotiating head of terms, with contracts expected to complete in the coming months. RBS recently vacated 6 Brindleyplace, but still has around 10 years of its lease remaining. The bank’s global trade services Birmingham HQ also occupies about 301,000 sq ft at 7, 8 and 10 Brindleyplace. WeWork is also in discussions to take further space at Paradise Circus and 3 Snowhill, mirroring the cluster strategy it pursued in Manchester – it establishes several locations in one city before launching in the next. Last October, WeWork instructed JLL to find a circa 60,000 sq ft leasehold in Birmingham, offering a new level of flexibility for city centre workers. HSBC Alternative Investments (HAIL) acquired 3, 4, 5, 6 and 9 Brindleyplace in 2017, from joint venture partners Hines and Moorfield. Hines UK has continued to manage the 500,000 sq ft mixed-use space, which was originally developed by Argent in 2000. Birmingham’s serviced office sector has been slow to get off the ground, with limited available space in the city centre. While serviced office space take-up is growing, much of this still lies with traditional managed centres and full-service operators. In 2018, flexible working operators took 313,000 sq ft of office space in the city, making up 22% of office transactions. Spaces by Regus was the most active new entrant, taking 30,000 sq ft in the Lewis Building and 80,000 sq ft in the Crossway. Instant Offices and MSO also acquired a number of locations. Avison Young and Savills are joint commercial letting agents for the Brindleyplace estate. AY is also advising RBS; JLL has been instructed by WeWork. WeWork declined to comment. To send feedback, e-mail emma.rosser@egi.co.uk or tweet @EmmaARosser or @estatesgazette