Central Birmingham office take-up in Q2 2026 reached 44,553 sq ft, bringing the first-half total to 151,277 sq ft across 32 transactions which is below average.
Charles Warrack, Partner at leading property consultancy Fisher German which has an office in Colmore Row in Birmingham, believes there is much to be optimistic about for the remainder of 2026.
The latest central Birmingham office figures make interesting reading, and the headline numbers do not tell the whole story.
Take-up during the second quarter was lower than usual, reflecting a market in which occupiers are taking longer to make decisions amid continued changing domestic and international economic conditions.
Geopolitical disruption, economic caution and changing workplace requirements have combined to create an evolving environment for businesses considering their occupational property commitments.
One of the most important factors behind the recent slowdown is the limited availability of new, high-quality office space in the city centre. The latest developments delivered to the market have all been very well let and there is now no brand-new Grade A office accommodation immediately available in central Birmingham.
This shows a clear link between the type of space available and the level of take-up being recorded.
Occupiers have become increasingly discerning. They are looking for offices that assist them to attract and retain staff, support flexible working and demonstrate their environmental / ESG commitments.
Location remains paramount, but so is the quality of the offices, access to amenities sometimes the ability to occupy space without an expensive and time-consuming fit-out. Office accommodation already fitted and furnished is proving to be increasingly popular.
This “flight to quality” has been evident for some time. The best specification buildings with high levels of amenity such as additional meeting rooms / break out space and end of journey facilities such as showers and cycle stores etc continue to attract interest while older or poorly specified office stock can find it harder to attract tenants. For landlords, this should be seen as an opportunity instead of a threat.
There is a substantial amount of older office accommodation in Birmingham that could meet occupier demand if it were refurbished and repositioned / refurbished effectively.
We are advising landlords to make this investment so that they are better placed to compete in a competitive market and to achieve the best possible rental income.
The second-quarter figures should be viewed in the context of the wider pipeline.
An estimated 250,000 sq ft of transactions are currently under offer alongside a number of active requirements. These transactions will not all complete immediately, and they demonstrate that businesses are committed to Birmingham and this activity will inevitably rebalance during the second half of the year.
Birmingham continues to have very strong fundamentals as a leading UK and indeed international city. The priority now must be ensuring that its office stock evolves in line with changing occupier expectations.
The landlords and developers who respond decisively will be best placed to benefit from the market activity.