Birmingham’s office market has started 2026 on a positive footing, with renewed momentum underpinned by resilient occupier demand and a clear shift towards higher-quality space. Against a backdrop of ongoing global uncertainty, sentiment in the city remains encouraging, with activity levels and leasing trends pointing towards a robust year ahead.
Charles Warrack, Partner at Fisher German in Birmingham, believes this confidence reflects both improving market fundamentals and a continued evolution in occupier priorities.
“Despite the global backdrop, sentiment in Birmingham’s office market is genuinely positive. We’ve seen a strong start to 2026, and that gives us confidence for the remainder of the year.
“Take-up reached 106,724 sq ft across 24 transactions in Q1, up from 72,512 sq ft in the same period last year, which is a clear sign that activity is picking up.
“Prime headline rents are now reaching £52 per sq ft, underlining the strength at the top end of the market.
“We’re continuing to see strong demand from professional services, alongside growing interest from the education sector, which is helping to broaden the occupier base.
“That’s reflected in some of the key deals this quarter, including Eversheds Sutherland taking 45,690 sq ft at 3 Chamberlain Square, alongside lettings to Siemens Mobility and Goldbeck at Brindleyplace.
“One of the defining trends remains the ‘flight to quality’. Occupiers are weighing up whether to take space that’s ready to go or invest in upgrading older offices, but the cost and time involved in fit-outs can be significant.
“As a result, there’s a clear shift towards fitted, high-spec space.
“Even though rents may be higher, the ability to spread costs and move quickly is proving far more attractive. This is reinforcing demand for the best buildings.
“That’s driving continued strength in prime Grade A offices. Location is key, particularly access to amenities, but the internal fit-out and overall quality of the space are just as important.
“This is also supporting rental growth at the top end of the market and widening the gap with secondary stock.
“For landlords and developers, this creates a clear imperative.
“High-quality, well-located and fully fitted space with strong ESG credentials is outperforming older stock which is increasingly in need of refurbishment or repositioning to remain competitive.
“We’re also seeing a lot of movement within Birmingham itself, with businesses either upsizing due to growth or downsizing into better-quality space.
“It’s less about the amount of space and more about the quality of it.
“Looking ahead, the pipeline is encouraging and we expect to see further growth through the remainder of 2026. If supply can keep pace with demand for high-quality space, Birmingham is well positioned to build on this positive momentum even if the global uncertainty continues.”
Caption: Charles Warrack, A Partner at Fisher German’s office in Birmingham.
