Flexible workspace provider Orega has agreed a management agreement with abrdn on 30,500 sq ft of space at Ingenuity House in Solihull.
The space, which will open in January next year, will be extensively refurbished to provide circa 500 workstations on the ground and first floors of the building.
Orega has already pre-sold 150 desks on the first floor to a major financial services business at the 114,635 sq ft Grade A building, which is located adjacent to Birmingham International Airport and train station.
Ben Hutchen, real estate director at Orega, said: “Ingenuity House is a unique building, which will attract a lot of interest from businesses who are increasingly looking for a flexible way to occupy property but also require high quality ‘state-of-the art’ space. The popularity of flex space has been growing in Birmingham. According to CBRE, the city now has 650,000 sq ft of flex space, an increase of 37% on 2022. Average occupancy rates in the city are high at 85%.
“We are also delighted to have secured an early pre-completion letting to a prime financial services business, which clearly demonstrates the quality of ‘flex’ demand. We are thrilled to have captured this within our joint venture agreement on behalf of abrdn.”
Les Ross, fund manager at abrdn, added: “We look forward to working with Orega on this new partnership. Ingenuity House is a high-quality asset with strong ESG credentials. We are committed to reduce the environmental impact of our buildings and we also have a responsibility to investors who want to ensure the way they invest is environmentally relevant. Given the high specification of this building we expect to attract significant interest from occupiers.”
Will Kinnear of HEWN, who advised abrdn on the letting to Orega, said: “The flexible workspace sector is flourishing in the regions, as hybrid working becomes business as usual. By their very nature, flexible workspaces are flexible and responsive to market conditions. Abrdn understand this and the partnership with Orega, to provide a high-quality flex offering alongside a traditional office product will ensure that Ingenuity House can meet all demand in the area. This site is a gamechanger for the Midlands and the flexible workspace market.”
CBRE has been retained by abrdn to lease the remainder of the space at Ingenuity House with floorplates of 19,000 sq ft to 30,813 sq ft available.
Dan White, head of flex advisory, Midlands and South at CBRE, said: “It’s no secret that take-up of flex product in Birmingham city centre is high, but the out-of-town market is under served. We’re thrilled to have helped Orega get a foothold here, with the pre-let demonstrating that the demand is there.”
Michelle Mills, CBRE’s out-of-town specialist, added: “The addition of flex space at Ingenuity House will be a draw not only to footloose occupiers looking for high quality accommodation, but also to larger tenants who wish to take dedicated space but can scale-up as they grow within the building. It undoubtedly further boosts the appeal of this high spec and prominently located landmark office space.”
