The Cost of Office Space in Birmingham in 2026

These forces are reshaping the cost landscape. The headline question, “what does office space cost in Birmingham?”, now sits alongside broader considerations around value, quality and future-proofing. For many organisations, the real challenge is understanding where the market is moving, how supply constraints are likely to evolve, and what that means for the timing and specification of their next move.

This guide outlines the current cost ranges across the city, unpacks the market dynamics driving them, and provides clarity for leaders planning their workplace strategy for 2026 and beyond. Below, you can jump straight to the section most relevant to your search.

Table of contents

• Market overview for 2026
• Prime rents in Birmingham
• The cost of office space in Birmingham
• Leasing activity across the city
• Driving the costs: the demand for Grade A space
• How much space does your business need?
• The outlook for Birmingham office space

As hybrid working continues to mature, occupiers are consolidating into smaller, better-performing offices, increasing competition for prime space while reducing demand for secondary floors that no longer support modern workstyles. This dynamic is driving rents for top-tier space to record levels while placing downward pressure on buildings that require significant refurbishment to remain viable.

With only a modest development pipeline and growing regulatory pressures around energy performance, the city is facing a potential shortage of Grade A space over the next few years. As a result, many organisations are reassessing costs earlier in their lease cycle, weighing not just rent but long-term value, sustainability and employee experience. Navigating this landscape requires clear insight into how supply, demand and workplace expectations are evolving.

Driving the costs: the demand for Grade A space

Grade A space remains the battleground in Birmingham’s office market. Occupiers are targeting sustainable, hybrid-ready buildings with strong amenity provision, and are willing to pay a premium for the right product.

Overall, Birmingham has around 2.64 million sq ft of available space, equating to vacancy of roughly 15%, but this headline figure masks a clear split between prime and secondary stock. Much of the availability sits in older, less efficient buildings; recently delivered Grade A schemes are either fully let or close to it.

Buildings such as 103 Colmore Row, 1 and 3 Chamberlain Square, One Centenary Way and Enterprise Wharf have proved particularly attractive for larger occupiers looking to consolidate into a single, high-performing HQ. In many cases, businesses are reducing overall square footage by 15–20% compared to previous leases but significantly upgrading the quality and flexibility of their space.

Hybrid working is central to these decisions. Average daily attendance for many Birmingham occupiers sits around 50–60%, but teams still need an office that can support collaboration, client meetings and project work when people do come together. That is pushing more organisations towards “right-sized” but higher-quality space, rather than simply chasing the lowest cost per sq ft.

What tenants want

Organisations are currently focusing on two things: taking quality space and agreeing to more flexible terms. The increasing demand for flex space from corporate users is likely to influence the expansion of more flexible offices in the city due to the current and predicted demand. This is likely to affect the cost of office space in Birmingham and similar trends will affect prices in other big cities.

ESG has become the word – or acronym – on everybody’s agenda. Commercial property agents, landlords and occupiers alike are all assessing the relationship they have with their teams, how they use their office space and how this affects their property strategy. Environmental, Social and Governance (ESG) has become an ethical priority for occupiers, enabling them to enhance their corporate decision-making and, as one of many benefits, make their organisations appealing to existing and potential talent.

Another key trend behind this activity is that more companies are relocating from London to Birmingham to set up their offices. This shift is helping to diversify the city as an increasing number of national and international firms are choosing to open major offices in Birmingham. With a broader range of occupiers being reported in the quarterly transactions, the resilience of the market is being proven; something that has been previously acknowledged in Solihull and the M42 corridor.

There are, however, several forces that may temper activity. Corporate cost-cutting, tax pressures and wider macroeconomic uncertainty could delay some leasing decisions. Even so, Birmingham’s diverse economic base continues to underpin demand and provide resilience as the market evolves.

Competition for the best space will remain intense, and Grade A availability in the city centre is likely to stay tight given the limited development pipeline. ESG requirements, hybrid working patterns and the rising bar for employee experience will continue to shape not only rental levels but also the strategies businesses use to secure and configure their space.
Organisations that start planning early, define the role their workplace needs to play, and rely on data-driven negotiation will be best positioned to secure value in this environment.

For further advice on the Birmingham office market, contact our regional workplace experts. They can guide you through both tenant and landlord markets in greater detail.

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