The Cost of Office Space in Birmingham in 2025

Home / Insights / The Cost of Office Space in Birmingham in 2025

Take-up in Birmingham surged in at the end of 2024, reaching 348,690 sq ft which marked a 106% increase on the previous quarter’s figure of 169,000 sq ft. This represents the highest quarterly take-up since 2017 and was driven by significant transactions in the education and professional services sectors.

City centre activity accounted for the majority of take-up in the most recent quarter, driven by continued demand for Grade A, high-quality space. However, supply remains constrained, with the availability of Grade A space at just 2.3%, a slight decrease from the 2.4% reported in the previous quarter.

Prime rent in Birmingham

Prime rents in Birmingham remain at £42.50 per sq ft, consistent with last quarter and reflecting a 5.5% year-on-year increase. Sustained demand for premium space is expected to keep upward pressure on rents, with forecasts suggesting growth could push prime rents to £48 per sq ft by 2028, as demand for ESG-compliant, amenity-rich offices persists.

Download The Birmingham Rent Report for more details.

DOWNLOAD

The cost of office space in Birmingham 2025

These costs are a guide provided by local commercial property experts and rent reports. Costs are updated each quarter, and are subject to change.

Vertical market activity

The public sector emerged as the dominant driver of leasing activity at the end of 2024, accounting for 38% of total take-up, with significant contributions from the education subsector. This included Aston University’s 189,053 sq ft lease at 100 Woodcock Street and GBS’s 68,192 sq ft lease at 1 Brindleyplace, two of the quarter’s largest deals.

The professional services and financial services sectors also played significant roles, collectively contributing 32% of the quarter’s activity. Over the past year, government, professional, and financial services have collectively accounted for 77% of all take-up, demonstrating the strength and diversity of demand in Birmingham’s office market.

Demand for Grade A space

Despite the record take-up levels at the end of 2024, the availability of Grade A office space remains critically low, with just 2.3% of total supply available. This reflects the continued high demand for premium, high-quality stock. To address this, 397,000 sq ft of new Grade A developments, including King Edward House, 19 Cornwall Street, and 3 Chamberlain Square in Paradise, are set to complete in 2025. These developments aim to alleviate the pressure on supply while meeting the growing demand for ESG-compliant, flexible and amenity-rich office spaces that occupiers increasingly prioritise.

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.

The outlook for Birmingham office space

The city continues to attract businesses due to its competitive market and high-quality developments. As more national and international firms relocate from London, Birmingham is solidifying its position as a key business hub. Landmark properties like 103 Colmore Row and upcoming developments like Enterprise Wharf and One Centenary Way are drawing interest with their amenity-rich, sustainable designs.

New developments, including Enterprise Wharf, One Centenary Way, and further phases of Paradise, will provide much-needed high-quality stock to the market. As demand for best-in-class offices continues to rise, particularly among national and international firms, Birmingham is cementing its position as a leading regional business hub.

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.