Birmingham office market H1 2026 review

Key Birmingham office market 2026 transactions

The legal sector continues to be a vital one to the health of the Birmingham city centre office market. Eversheds Sutherland, a global provider of legal and professional services, secured the half’s biggest deal, leasing 45,690 sq ft – the final available space at Three Chamberlain Square.

2025’s intriguing trend of serviced office providers taking further city centre space has also continued. Block Workspace’s 22,057 sq ft deal at 1 Colmore Square was the second largest of the half, contributing 50% of the entire Q2 take-up in just one deal.

Three deals in Brindleyplace were also confirmed in H1, with a total of 27,758 sq ft leased in 10 and 11 Brindleyplace,18% of H1 take-up. This is hopefully a sign of a new trend emerging that’ll see occupiers choosing CBD-adjacent space now that the Colmore Business District is running low on availability.

Final Paradise lease is H1’s largest transaction

Taking 45,690 sq ft at Three Chamberlain Square, Eversheds Sutherland has joined a wealth of fellow legal occupiers in Paradise. DLA Piper, Knights, Mills & Reeve, Fieldfisher and TLT and have all made Paradise their base of operations since 2019.

The Eversheds deal has subsequently filled the Paradise region, which now sees One Centenary Way, and One, Two and Three Chamberlain Square all fully let.

Paradise has proven to be an incredibly popular part of the CBD, fulfilling a desire for brand-new office space, particularly in the legal sector. Aside from the space itself, occupiers have also benefited from a genuine business community, a range of local amenities and excellent transport links.

Those looking to join Paradise will now have to patiently wait for the further 600,000 sq ft of office space to be completed as part of the development’s masterplan.

2025 sector trends have continued into H1 2026

The Professional Services sector continues to be one of the Birmingham office market’s top performing industries. After securing 383,134 sq ft in 2025, the highest for the sector since records began, Professional Services remains the most valuable city centre sector in 2026. However, it must be stated that this does still come with a loss in overall take-up.

Professional services accumulated 67,894 sq ft in H1 2026, 45% of the entire take-up for the half. However, this is a 33% decrease in take-up in comparison with H1 2025 and a 76% decline on H2 2025. This correlates with the reduction in deals made over the half, with a lack of mid-tier consistency affecting the market – something we saw the M42 and Solihull region achieve well in our H1 review.

Beneath Professional Services is the ‘other’ catch-all sector (comprising this year transport, charity, healthcare and manufacturing), taking 25,333 sq ft for 17% of the overall H1 take-up. Following this is Serviced Offices, a sector that re-emerged in 2025 with its best take-up in four years. However, its 2026 success has only been achieved via a single, 22,057 sq ft deal – Block Workspace’s transaction at One Colmore Square.

Birmingham office market take-up by sector

External factors still affecting Birmingham office market

A range of issues across the entire property industry, government and economy are continuing to have a negative impact on the local commercial market.

Major operators are still showing signs of permanent downsizing following the pandemic and the popularity of hybrid working styles. Eversheds Sutherland’s deal is a prime example of this. Whilst their 45,690 sq ft at Three Chamberlain Square was key to H1, the legal services provider left an 80,000 sq ft space at 115 Colmore Row – a 43% decrease in sq ft.

With businesses consistently looking for ways to further reduce operational costs, downsizing can offer this whilst unlocking improvements in overall quality of office space and additional amenities for teams. The idea of space that enhances work-life balance and attracts staff to continue commuting to office environments is now seen as a requirement rather than a luxury.

Not only that, but with the rising costs in dilapidations and the office relocation process as a whole, businesses are appearing more hesitant to change than ever. When combined with the instability felt within the UK Government and wider political issues, it’s understandable that occupiers would look to extend leases in the hope of more secure circumstances later.

CBD alternatives ready to reinvigorate lettings

In our H1 2025 review, we reported how the impending lack of Colmore Business District space could see the Birmingham office market start to suffer. Now, 12 months later, with the CBD still taking 58% of all H1 take-up, it appears the supply may no longer meet the demand.

Occupiers looking for high-quality office space should now start to consider the untapped potential of other city centre regions.

10 and 11 Brindleyplace, properties within a prime, CBD-adjacent area, saw three deals achieved in H1 – totalling 27,758 sq ft – with a wealth of excellent refurbished office space still available. These also represented the top third, fourth and fifth deal of the half year.

1 Beorma Place, part of the new development, Beorma Quarter, opposite Selfridges, is the only brand-new commercial option in the city. The building is on schedule to have office space available from March 2027.

Newly refurbished and minutes from the CBD, 35 Newhall Street is now open and boasts BREEAM Excellent and EPC-A certifications. The building has already secured its first occupier, MHA, who moved into their ground floor suite in March following an H2 2025 letting.

Those still wanting to move to a central CBD location will need to consider refurbishment options such as the 88,000 sq ft space at Multistory or 90 Colmore Row, due for completion in spring 2027 with 32,000 sq ft available.

Birmingham office market take-up by location

Lacklustre H1 could mean repetition of 2025

Whilst it’s concerning outcomes shouldn’t be ignored, H1 2026 does show striking similarities to H1 2025, in which only 28% of the year’s total leased space was accounted for.

Q2 2026 is one of only four times since records began that a Birmingham quarter was surpassed in square footage taken by the M42 and Solihull region. And there’s much to be learned from the success of the out-of-town market.

Solihull has been very consistent in its ability to let office space in the mid-tier size brackets, particularly the 10,000-20,000 sq ft field. If Birmingham city centre is going to rebound quickly in H2, a similar formula should be followed to maximise the potential of the key properties outlined in this review.

Birmingham’s H2 2025 saw 468,713 sq ft taken over 60 transactions, including a landmark Q4. Should H2 2026 see a similar achievement, it would keep the year’s total square footage within respectable reach of the recent year-on-year average and, hopefully, gain momentum for a prosperous 2027.

Outlook for Birmingham office market in H2 2026

Potential occupiers should be reassured

With so many uncertainties giving potential occupiers a reason not to move, it’s important that they understand the long-term potential of an immediate transaction. Birmingham is enjoying a wealth of new funding and investment, with multiple projects ready to transform several areas of the city and significantly elevate their value. A lack of movement now may mean occupiers miss being part of Birmingham’s next great commercial district.

Former Rackhams redevelopment is underway

The area previously home to Rackhams and House of Fraser is officially in its initial stages of development. The mixed-use scheme, part of Birmingham Central Heart, will comprise retail opportunities, 650 new homes and over 370,000 sq ft of new office space.

Most recently, an Environmental Impact Assessment (EIA) Scoping Report has been submitted by Sphere Group. This is in conjunction with a request to Birmingham City Council for an EIA Scoping Opinion, which would not only affect the proposal for the former Rackhams building, but 43 Temple Row and 1 Temple Row as well.

Should approval be granted, the development will provide even greater investment and significant regeneration to a city centre that’s ready to meet the needs of future generations.