Birmingham office market round-up
Take-up remains subdued
Take-up in Birmingham during Q2 2026 totalled 44,553 sq ft and was achieved through eight transactions. This brought the half-year total to 151,277 sq ft, which was 19% below the same period in 2025, and also 47% below the five-year H1 average for the market, as current uncertainty, both domestic and international, continues to affect decision-making. There were 32 transactions, 18% below H1 2025, with 78% of these under 5,000 sq ft.
Although take-up has remained subdued, occupiers continue to choose best-in-class space, with Grade A and Prime take-up totalling 122,962 sq ft in H1 2026. The Grade A and Prime combined take-up accounted for 81% of the total, 14% above the five-year H1 average proportion of take-up.
Availability continues to fluctuate
Availability at the end of Q2 2026 totals 2.1 million sq ft, an increase of 12% on the previous quarter. This means that the overall vacancy rate has increased by 120 basis points (bps) to 11.5%.
Grade A and Prime availability stand at 872,000 sq ft and 636,000 sq ft, an increase of 2% and 40%, with Prime increasing due to a reclassification of buildings in the city. The Grade A vacancy rate is now 4.7%, while the Prime vacancy rate has increased by 90 bps, it remains low at 3.4%.
Professional occupiers lead take-up in the first half of 2026
‘Professional services’ was the most active sector during the first half of the year, leasing a combined 51,086 sq ft, accounting for 34% of the take-up, with the highest H1 for the sector since 2022. There were three transactions completed, with Eversheds Sutherland acquiring the largest at 3 Chamberlain Square for a total of 45,690 sq ft in Q1.
The ‘Serviced office’ sector was also active in H1 2026, leasing a total of 22,057 sq ft, accounting for 15% of the total. There was one deal in the sector which saw Block acquire the total sq ft at 1 Colmore Square. ‘Property, development and construction’ accounted for 13%, leasing 19,462 sq ft across five transactions, with Goldbeck acquiring the largest of the sector at 11 Brindley Place, totalling 8,832 sq ft.
It is expected that the second half of the year will see an increase in activity, with several active requirements in the market.
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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