Occupancy levels at Birmingham’s flexible offices have hit a new high, according to research from CBRE.
Average occupancy for flex offices within the city centre is now 84%, the highest level since the property consultancy started tracking market data in 2020.
According to Dan White, CBRE’s Head of Flex for the Midlands and South, constraints on available space and high demand have contributed to the record statistic.
He said: “We lost more than 80,000 sq ft of flex space in the city centre at 1 Victoria Square and Two Snowhill across 2024 and 2025.
“Displaced tenants have been homed with other operators or within other buildings in their portfolios, reducing capacity across the sector, while demand for flex space in general has not abated. The finance and professional services sector has been particularly active, evidenced by Accenture’s 150 desk/8,900 sq ft letting at Bruntwood SciTech’s Cornerblock in July.”
White says the decision to close these operations at 1 Victoria Square and Two Snowhill is not concerning.
He added: “The operators of these flexible offices were pioneers of the flex market in Birmingham; their rental agreements are more than a decade old. Office rents in the city have climbed during that period and occupier expectations have also changed. It didn’t make sense for them to remain in these locations, but they are still active elsewhere in the city. What’s more, there are a new wave of openings in the pipeline that will fill the void.”
According to CBRE, the national rise of landlord-owned flex brands has been evidenced in Birmingham. Bruntwood is targeting a 20% share of the flex market in the city and has made inroads with flex offers at its Centre City, Cornerblock, McLaren Building and Enterprise Wharf holdings. It’s a policy that is paying off, with the company securing the biggest flex deal in Birmingham this year at its Cornerblock scheme.
New entrants to Birmingham’s flexible office market include Gilbanks, which is opening 22,000 sq ft of flex space at Five St Philips in October. Covalt is taking part of the 55,000 sq ft vacated at 1 Victoria Square, also in October. A deal with a flex operator is also due to complete at Multistory, 2 Priory Queensway.
White said: “The appetite for flex space from both landlords and operators is matched by demand from occupiers. Economic and confidence challenges have forced many businesses to reassess their real estate strategies, of which flex now plays a key part. As a result, transaction volumes have remained robust, outstripping 2024 flex take-up in Birmingham.”
