Plans for a giant £40 million office block have been welcomed as a remedy to a medium-term shortage of grade A offices – despite drawing opposition in the city.
Proposals for a 13-storey office block on the corner of Livery Street and Cornwall Street, next to Snow Hill Station, go before planners this week, .
However, business leaders say the city is facing a shortage of grade A stock in the coming years and the development, known as Peat House, was needed.
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English Heritage and Birmingham’s conservation panel have raised objections to the plans, saying it is too overbearing and will harm the Old Contemptibles pub and neighbouring buildings, including the Unison union headquarters, in the Colmore Row conservation area.
Matt Long, a director in the office agency at property firm Colliers International, said the city was facing a shortage of quality office space by 2016 unless sites like this are developed.
He said: “Taken in a wider context there is going to be demand for buildings of that size and floor space.
“There is just under half a million square feet of grade A space still available and the average market take-up over the last five years is 250,000 square feet – so there is not a lot left.
“There is a demand to satisfy existing occupiers in Birmingham and for inward investment.”
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West Register, the property arm of RBS, is behind the planning application to demolish the Peat House office block, which is nine storeys at its tallest point, and replace it with a taller modern block – complete with a restaurant or bar on the ground floor.
The glass and brick 1980s-built Peat House was until recently home to KPMG accountants. English Heritage said it has no objections to demolition of the existing building but is worried the new office is too large.
A spokesman said: “A less bulky and oppressive scheme that makes better distinction between the street frontage and a setback tower would be more suitable.”
This view was echoed by the council’s own Conservation Panel, which said: “The height of the proposed building would result in it looming over the Old Contemptibles and the Unison Building and appearing overbearing.”
But council planning officers have recommended the block should be given the green light when the planning committee meets today.
They argue that tall office development is appropriate and 13 storeys is not excessive compared to other recent office developments in the Snow Hill area.
David Kuczora, member of the city centre committee of BPS Birmingham Future, said: “There is a need for the city to offer realistic pre-let opportunities in order to attract potential future inward investment, particularly with existing grade A stock diminishing. Birmingham needs to be able to compete with other regional cities to attract footloose occupiers. It is encouraging that we are seeing commitment by developers to back major redevelopment schemes such as Peat House, as it points to a continued strengthening of the regional economy.”