Birmingham city centre office market rebounds in H2 2025 as Q4 delivers strongest quarter in 8 years

The Birmingham city centre office market finished 2025 strongly with take-up on a par with 2017 in the final quarter, according to KWB’s latest 2025 Birmingham Office Market Review and H2 Report.

KWB’s research shows total Birmingham city centre take-up reached 651,507 sq ft across 98 transactions in 2025, with momentum accelerating sharply in the final quarter. Q4 alone delivered 290,059 sq ft – the best Q4 in eight years and the biggest since 2017 – accounting for 45% of annual take-up.

Key findings from KWB’s 2025 Birmingham office market review include:

• 651,507 sq ft total take-up across 98 transactions in 2025
• 72% of annual take-up completed in H2 2025
• 290,059 sq ft transacted in Q4 2025 (45% of the annual total)
• The largest deal of the year was EY’s 93,780 sq ft lease at Three Chamberlain Square, representing 14% of annual take-up and 20% of H2 take-up
• The Colmore Business District accounted for 458,826 sq ft — 70% of city centre take-up – supported by sustained demand for larger, high-quality space

Malcolm Jones, Head of Office Agency at KWB, said: “After a mixed first half, Birmingham’s office market finished 2025 with real momentum. With nearly three quarters of take-up completing in H2 — and a standout final quarter — occupiers showed renewed confidence, particularly for larger, high-quality office space in core locations.

“The scale of activity in Q4, alongside major professional services commitments such as EY at Three Chamberlain Square, underlines that best-in-class office space continues to outperform.”

KWB’s analysis highlights a shift in sector activity versus 2024, with professional services taking 383,134 sq ft – 59% of total annual take-up – and completing 48 of the year’s 98 transactions.

The report also notes a marked increase in serviced office operator activity, which totalled 79,963 sq ft in 2025, equating to a 12% share – the largest since 2021.

Looking ahead, KWB’s report suggests the Colmore Business District is likely to remain dominant, but with limited new, prime supply coming through, occupiers may increasingly need to consider alternative city-centre locations.

The report identifies 1 Beorma Place as the sole brand-new commercial office completing in 2026, alongside a pipeline of refurbished office space including King Edward House, 35 Newhall Street and 19 Cornwall Street.

Malcolm added: “The key question is whether supply can keep pace with this returning confidence. With limited new, prime completions in the near term, we expect occupiers to become more proactive, securing quality space earlier, considering best-in-class refurbishments, and in some cases broadening their search beyond the traditional core. For developers and investors, sustained rental growth will be central to unlocking the next wave of Grade A delivery and keeping Birmingham competitive.”

Read the full 2025 Birmingham city centre office market review here.

For more insights from the Birmingham city centre office market 2025 review, or for landlord or occupier advice, please contact:

Malcolm Jones

Phone

Email mjones@kwboffice.com

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