Birmingham’s office market continues to build on the momentum established at the start of 2026. Occupier demand remains resilient, rental growth is sustained, and availability of best-in-class space is exceptionally tight. Vacancy for prime offices stands at just 3.02% and significant high-grade refurbishments are underway. These conditions point to a market entering its next phase of robust performance.
Take-up has remained on an upward trajectory through 2026, with annual volumes reaching 651,507 sq ft across 98 transactions, underpinned by major commitments from occupiers such as EY and Deloitte. While overall activity remains slightly below long-term averages, the scale of larger deals continues to demonstrate underlying demand. Against a backdrop of ongoing economic uncertainty, confidence is still evolving, and occupiers are expected to increasingly consider pre-lets as a strategy to secure the right space. With total vacant supply at 1.53 million sq ft (8.6%) and forward supply historically low, this is likely to become a more prominent feature of the market.
Rental performance is expected to strengthen further as 2026 progresses. Prime headline rents have reached £52.00 per sq ft, representing 50% growth since 2020. Limited new‑build development and viability constraints mean refurbishment‑led schemes will dominate upcoming supply, particularly sustainability‑driven repositioning projects completing through 2026 and 2027. With inward investment strengthening and Grade A space letting rapidly upon completion, Birmingham is well positioned for continued rental growth and sustained demand for high‑quality workspace.
