Birmingham office market roundup
Take-up remains robust
Take-up in Birmingham during Q4 2025 totalled 288,018 sq ft, which was 110% higher than Q4 2024, and 85% above the five-year Q4 average. This brought the full-year total to 703,430 sq ft, 2% above the five-year annual average. This was achieved through 100 transactions, 3% higher than the total in 2024.
Grade A and Prime take-up combined totalled 515,322 sq ft, representing 73% of the total take-up — 3% higher than the five-year average proportion. This was through 59 transactions during the year, 32% higher than the five-year average of 45 transactions.
Availability continues to fall
Availability at the end of Q4 2025 totals 1.7 million sq ft, reflecting an 11% decrease on the previous quarter. This means that the overall vacancy rate has decreased by 120 basis points (bps) to 9.6%. Of this total, secondary stock totals 446,840 sq ft, accounting for 25%.
Grade A availability stands at 795,661 sq ft, while Prime availability totals 532,515 sq ft. Grade A availability has remained on par with the previous quarter, whereas Prime availability has decreased by 27% due to several large Prime transactions in 2025. This means that the Grade A vacancy rate has remained the same, while the Prime vacancy rate has decreased by 100bps to 2.9%.
Professional occupiers continue to lead take-up
The most active business sector in 2025 was the 'Professional' sector, which accounted for 41% of the total take-up, leasing a combined 281,598 sq ft across 19 transactions. The largest letting of the sector was EY, which acquired 93,780 sq ft at the recently completed 3 Chamberlain Square, Paradise. Deloitte also made a significant contribution, leasing 45,965 sq ft at One Centenary Way.
The 'Public services, education & health' sector was also active during the year, leasing a total of 127,539 sq ft, accounting for 18% of the total take-up. The largest transaction in this sector was by Birmingham Centre for Anatomy & Surgical Clinical Skills, which acquired 50,594 sq ft at BHIC.
Grade A and Prime take-up combined totalled 515,322 sq ft, representing 73% of the total take-up
Ben Thacker, Director, Office Agency
Headline rent
The Prime headline rent increased significantly during 2025 and now stands at £46 per sq ft.
Birmingham has experienced 33% rental growth since the end of 2019, with the new rent 8% higher than the previous high of £42.50 per sq ft, achieved in 2024. However, Savills is aware of a transaction that will be achieved in Q1 2026 at £52 per sq ft, further increasing the headline rent and representing another increase of 9%.
Looking ahead, against a backdrop of increasingly in-demand Prime supply and a constrained development pipeline, forecasts predict the headline rent will increase by a further 30% over the next five years, reaching approximately £60 per sq ft by the end of 2030, if not sooner.
Find out more about Birmingham's property market here.
Interested in other areas of the UK?
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