Share
min read
Senior Content Manager
Content specialist in office design and build.
-
Birmingham is one of the UK’s most important regional office markets. Its central location, strong transport connections and established professional services sector make it a natural base for businesses serving the Midlands and the wider UK. But occupiers looking for space in the city are entering a market that is moving at two different speeds in 2026.
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
-
The Birmingham office market overview
Birmingham’s office market has become increasingly divided as we’ve moved through 2026. While occupiers are taking a more cautious approach to leasing decisions, there’s still a very apparent demand for the best-quality with Grade A and prime offices accounting for 81% of city-centre take-up in the most recent quarter.
-
-
Around 263,000 sq ft of office space is due to complete in the city centre during 2026, below the 10-year annual average of 330,000 sq ft. Some of that space will also be committed before completion, limiting the number of new options available to businesses beginning their search.
For occupiers, a headline slowdown may create opportunities to negotiate on older or less sought-after space. The balance is different at the top of the market, where the strongest buildings can still command premium rents and attract competition. Understanding which features genuinely matter to your business will help you decide where paying more could deliver value, and where there may be room to compromise.
-
Prime headline rents in Birmingham city centre reached £52.00 per sq ft in Q2 2026, representing a new high for the market and reflecting the premium being placed on best-in-class buildings as Grade A availability remains constrained.
Looking ahead, restrained development activity and continued competition for high-quality space are expected to maintain upward pressure on prime rents. With limited new Grade A supply coming forward, rents could rise further during the second half of 2026 as occupiers compete for the best available space.
download report -
-
The cost of office space in Birmingham in 2026
Location Grade A Rent (per sq ft) Grade B Rent (per sq ft) Birmingham Central (CBD) £46.00 - £52.00 £26.00 - £37.50 Digbeth £32.50 - £35 19.00 - £20.00 Solihull £28 - £32 £20.00 - £21.00 Eastside £28.00 - £29.00 £19.00 - £20.00 Westside £28.00 - £29.00 £19.00 - £20.00 These costs are a guide provided by local commercial property experts and rent reports. These costs are updated each quarter and are subject to change.
-
What’s the difference between Grade A and Grade B space?
Grade A offices represent the highest-quality space in the market: modern or newly refurbished buildings with strong sustainability credentials, efficient floorplates, high-spec amenities and the infrastructure needed to support modern ways of working. Grade B space is typically older, with more limited amenities and lower energy performance, though upgraded refurbishments can narrow the gap.
In Birmingham’s current market, this distinction matters more than ever. Demand remains concentrated in Grade A buildings, where availability is extremely limited and rents remain at record levels, while older Grade B stock is seeing softer demand unless landlords invest to bring it up to modern standards.
-
-
Leasing activity across Birmingham
Birmingham’s office market slowed during the second quarter of 2026. Take-up across the wider market reached 114,771 sq ft, 20% lower than the previous quarter and the lowest quarterly total since Q2 2021.
The slowdown was more pronounced in the city centre, where take-up fell to 44,553 sq ft. This was 58% below Q1 and 74% below the five-year quarterly average. Economic and political uncertainty appears to have made some occupiers more cautious, leading businesses to delay decisions or spend longer assessing their options.
-
But lower take-up hasn’t made every type of office easier to secure. While businesses may have more choice across the wider market, demand is still concentrated in high-quality buildings and limited development is restricting the supply of new space.
This creates different conditions depending on the type of building you’re considering. Older or less sought-after offices may offer more scope to negotiate, while the best Grade A space can still attract strong competition.
-
-
Sector activity
Professional Services remains the strongest driver of demand in Birmingham, accounting for 49% of take-up over the last 12 months. The sector has continued to support leasing activity despite the more challenging market conditions seen during Q2, highlighting the importance of Birmingham’s established professional and business services base.
-
Government Services accounted for a further 14% of take-up, while TMT & Creative represented 11%, demonstrating a broader spread of demand beyond the market’s dominant professional services sector.
The largest transaction of Q2 came from outside these leading sectors, with clothing retailer AYBL acquiring 25,247 sq ft at Juniper in Solihull. This mix of activity shows that demand remains diverse, even as businesses take a more cautious approach to property decisions.
-
-
Driving the costs: the demand for Grade A space
Grade A space remains the most competitive part of Birmingham’s office market. Occupiers continue to prioritise sustainable, well-connected buildings with strong amenities and are willing to pay a premium for space that meets their long-term workplace requirements.
While overall availability remains relatively high, the supply of high-quality space is much tighter. This imbalance is helping to keep prime rents at a record £52.00 per sq ft, despite the slowdown in overall leasing activity during Q2.
Limited development is adding further pressure. Just 263,000 sq ft of new office space is due to be delivered in the city centre during 2026, below the 10-year annual average of 330,000 sq ft. With fewer new options coming forward, competition for the best existing and newly delivered buildings is likely to remain strong.
For occupiers, this places greater emphasis on finding the right balance between size, quality and cost. Rather than simply prioritising the lowest rent, businesses are increasingly assessing the wider value a workplace can provide through its location, sustainability, amenities and ability to support how their teams work.
-
How much space does your business need?
Determining how much space your business needs is the starting point for any office project, whether it’s a relocation or refurbishment. If you’re starting to assess your own space requirements, our office space calculator is a useful place to begin. It gives you an early indication of how much space your teams may need before entering negotiations.
TRY IT NOW -
-
What tenants want
Quality remains a priority for Birmingham occupiers, even as businesses take a more cautious approach to property decisions. The best offices combine strong sustainability credentials, modern amenities and flexible spaces that can support different ways of working, helping businesses get greater long-term value from their workplace.
Sustainability also remains an important consideration when comparing buildings. Energy performance, operational efficiency and ESG credentials can influence both the long-term cost of occupying a space and its ability to meet wider business objectives, increasing the appeal of newer and comprehensively refurbished offices.
At the same time, economic and political uncertainty is leading some occupiers to take longer over property decisions. This makes flexibility increasingly valuable, with businesses looking closely at the size, specification and lease terms of potential offices before committing to their next move.
-
The outlook for Birmingham office space
Birmingham is approaching the end of 2026 with a more cautious leasing outlook. Economic and political uncertainty may continue to lengthen decision-making in the near term, particularly for businesses considering larger property commitments.
At the top end of the market, however, supply conditions are likely to remain supportive of prime rents. With development activity restrained and high-quality availability limited, the strongest buildings should remain well positioned even if overall take-up remains subdued.
-
-
The gap between prime and secondary space is therefore likely to remain an important feature of the market. Buildings that offer strong sustainability performance, amenities and flexibility should continue to attract the greatest interest, while older stock may require further investment to remain competitive.
For tenants considering a move, renewal or consolidation, early planning remains important. Understanding requirements and available options well ahead of a lease event can provide greater control over cost, location and the quality of space secured.
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.
-
Contact us
Get in touch to discuss your potential office space costs
020 7553 9500
info@oktra.co.uk
-
"*" indicates required fields
Related content
-
Want updates on similar new content? We’ll send you an email a month with new insights when you join our mailing list.
JOIN THE LIST
