Birmingham office market roundup
Take-up remains positive
Take-up in Birmingham during Q1 2026 totalled 106,724 sq ft and was achieved through 24 transactions, 26% higher than in Q1 2025 and 13% above the Q1 five-year average. Quarterly take-up was down on the long-term Q1 averages; however, it was 41% above the same period in 2025 and followed the strongest Q4 since 2017, signalling improving occupier activity in the city.
Grade A and Prime take-up totalled 80,274 sq ft across seven transactions, accounting for 75% of the city's take-up, demonstrating occupiers’ continued preference for this type of accommodation. Combined take-up was 28% above the same period in 2025.
Availability continues to fluctuate
Availability at the end of Q1 2026 totals 1.9 million sq ft, reflecting an increase of 7% on the previous quarter. This means that the overall vacancy rate has increased by 70 basis points (bps) to 10.3%.
Grade A and Prime availability total a combined 1,309,970 sq ft, a decrease of 1% on the previous quarter. Grade A availability has increased by 7% and now stands at 854,123 sq ft; however, Prime availability has continued to decrease by 14% to a total of 455,847 sq ft. This means that while the Grade A vacancy rate has increased by 30 bps to 4.6%, the Prime vacancy rate has decreased by 40 bps to 2.5%, the lowest since 2022.
Professional occupiers continue to lead take-up
The most active business sector in Q1 2026 was the 'Professional' sector, accounting for 48% of take-up by leasing a combined 51,086 sq ft, the highest Q1 take-up for the sector since 2019. There were three transactions during the quarter, with the largest being Eversheds Sutherland taking the final 45,690 sq ft of space available at 3 Chamberlain Square.
The ‘Business & Consumer Services’ sector was also active, leasing a total of 13,537 sq ft and accounting for 13% of total take-up. There were three transactions in the sector, with the largest being Siemens Mobility acquiring 10,552 sq ft at 10 Brindley Place.
Q1 2026 take-up was 41% above the same period in 2025, signalling improving occupier activity in the city.
Ben Thacker, Director, Office Agency
New headline rent achieved
The Prime headline rent increased significantly during Q1 2026 and now stands at £52 per sq ft, which was achieved at 3 Chamberlain Square Paradise.
Birmingham has experienced 51% rental growth since the end of 2019, with the new headline rent 13% higher than the previous high of £46 per sq ft, which was achieved in Q3 2025.
Looking ahead, against a backdrop of increasingly in-demand Prime supply and a constrained development pipeline, forecasts predict the Prime headline rent will increase by a further 15% 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.
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