The office market in Birmingham is evolving rapidly and drawing significant interest from occupiers, investors, and corporate occupiers alike. This dynamic environment reflects broader economic trends, changing workplace expectations, and an increasing focus on the quality, not just quantity, of office space. In this article, we unpack the latest activity, what it means for landlords and tenants, and why strategies like office refurbishments are gaining traction.
A Snapshot of Market Performance
Recent data highlights that Birmingham’s office market is currently in a period of revitalisation. After a quieter start to 2025, activity picked up substantially in the latter part of the year, with overall take-up levels tracking close to long-term averages and growing occupier demand driving more leases. By the end of the third quarter of 2025, office take-up was reported at roughly 360,000 sq ft across many deals, pointing to a strengthening trend.
Prime rents are rising too. The headline rate in Birmingham has climbed to the mid-£40s per square foot, and forecasts suggest further growth as high-quality space remains in short supply.
This performance is part of a larger pattern seen across the UK’s major regional office markets, where prime rents are expected to increase as demand intensifies.
Why Quality Matters More Than Ever
Midlands occupiers are increasingly selective, favouring Grade A or recently upgraded office space with modern design, sustainability credentials, and amenities that support hybrid and collaborative working. As a result, high-quality office stock has rarely been scarcer, particularly in central locations like the Colmore Business District and Brindleyplace.
This shortage of top-tier space is one reason why refurbishment, rather than new construction, plays such a strategic role in the Birmingham market.
Office Refurbishment in Birmingham: A Strategic Imperative
With occupier demand focused on quality, many landlords and tenants are turning to refurbishment projects as a key differentiator. Refurbishing existing offices can transform outdated space into desirable, modern workplaces, unlocking value without the delays and uncertainty of new builds.
Going down the route of office refurbishment in Birmingham involves upgrading interiors, improving environmental performance, and reconfiguring layouts to support evolving work patterns. These improvements help landlords sustain rental growth and improve occupancy, while tenants benefit from better operational efficiency, enhanced branding, and a workplace that attracts and retains talent.
Notably, refurbishment is no longer a stopgap solution. It’s now a core part of how the city’s office market keeps older buildings competitive against new developments, often incorporating the latest technology and sustainability features to meet occupier expectations.
Renting Office Space: What Businesses Should Know
Whether you’re a startup, growing SME, or multinational planning a regional hub, Birmingham offers a range of flexible options. Districts like the Colmore Business District and Snow Hill provide prestige and transport access, while other areas like Jewellery Quarter and Edgbaston deliver character and lower cost per square foot. Flexible serviced offices also thrive here, catering to businesses that want a plug-and-play workspace without the long lease commitments of traditional offices.
Key considerations for tenants include understanding lease terms, managing fit-out or refurbishment costs, and aligning a space’s features with operational needs, especially with hybrid work patterns influencing space utilisation.
Outlook: Opportunities and Challenges
Overall, analysts expect Birmingham’s office market to remain resilient in 2026 and beyond. Robust demand for high-quality workspace, ongoing refurbishment activity, and Birmingham’s status as a major economic hub all support a positive outlook.
However, broader economic pressures and evolving workplace behaviours mean delivered space must offer the right mix of flexibility, sustainability, and efficiency to stay attractive. Tailored improvements through refurbishment will remain a central strategy for landlords and tenants alike.
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