M42 / Solihull office market 2024 review

Solihull office market 2024 key transactions

Q4 saw three more town centre deals completed, including the two largest of the quarter. The region has shown excellent recovery in 2024 after enduring a record low year in 2023.

Davison’s 9,945 sq ft transaction at Westbury House topped the Q4 standings, whilst AIR’s third deal of the year, leasing 7,922 sq ft to Forever Living, was the second biggest.

AIR remains a substantial factor in maintaining the health of the Solihull office market. However, with only three suites remaining for 2025, those looking for high-end office space in Solihull may need to consider alternative options.

In terms of key sectors performing well in 2024, TMT (Technology, Media and Telecoms) took 8 of the year’s 34 deals, the sector’s most since 2019. Meanwhile, the Professional Services sector recorded its highest take-up since 2021 with a total of 52,827 sq ft.

Top 10 transactions in the M42/Solihull office market 2024

Solicitors secure largest deal of Q4

The legal sector completed its only deal of Q4 for the largest of the quarter, and a freehold one at that. Davison Solicitors’ purchase of Westbury House, comprising 9,945 sq ft, which sees them replace Lyons Davidson at the property, is also the 6^th biggest of 2024.

This new acquisition reflects the desire of those businesses looking to stay within Solihull town centre as Davison’s current offices are currently on the adjacent street at The Courtyard. In fact, 24% of all the M42/Solihull office market’s deals were made in Solihull town centre (8 of 34 transactions) – a testament to its enduring value, convenience and local amenities.

AIR pens 3rd deal of 2024

Capping off a highly successful first year, AIR Solihull made its third and final deal for 2024 in Q4. The 7,922 sq ft deal with Forever Living was the second largest of the quarter and the 9^th of the year.

This transaction follows the 11,001 sq ft Robert Half deal in Q1 and the year’s biggest deal, 29,129 sq ft being leased to BNP Paribas Personal Finance in Q3. In total, AIR has leased 48,052 sq ft in 2024 – 23% of the entire take-up for the M42 and Solihull region.

The speed in which AIR’s space has been let speaks to the need for high-quality offices equipped with a premium specification. Originally, it may have been perceived that spaces like AIR were only appropriate for larger cities and businesses. Yet, AIR’s success makes it clear that high-end properties now have their place in towns and smaller regions as well.

Unfortunately for the thriving town centre commercial property market, AIR now has limited space – just over 17,000 sq ft across three suites – available to lease in 2025. However, it does mean those looking for higher-end offices should consider other options in the region, supporting other areas of the office market, including the key business parks at M42 junctions 6 and 4.

Professional Services tops Solihull market

Agreeing the most deals of any sector in 2024 with nine, Professional Services has had a reliable year of growth. Comprising subsectors such as legal, insurance, civil engineering, accountants and more, the sector as a whole has taken 52,827 sq ft across the year.

This total not only accounts for a 25% share of all M42 and Solihull office take-up, but is also the sector’s highest yearly square footage gain since 2021.

Having seen a statistical decline in 2019, Professional Services’ figures fluctuated greatly over the following years. This was highlighted in 2022 and 2023, as both years failed to surpass 30,000 sq ft in total take-up. Now, with the 2024 figures looking healthier, this could be a positive step forward for the future of the sector and the market.

It is worth noting that the Professional Services sector also showed excellent growth in the Birmingham office market for 2024, suggesting a strong period for the sector in general, currently.

TMT has biggest year since 2019

As well as Professional Services, the TMT sector also showed growth and prosperity in 2024. 8 of Solihull’s 34 deals were completed in TMT, the most since 2019, and 24% of the overall transactions.

These deals combined for a total of 45,014 sq ft across the year – a 21% share of the annual total take-up. This is also the sector’s highest take-up figure since 2022, improving from the 2023 dip of 11,331 total sq ft, only 8% of the overall office market share.

Showing similar fluctuation to Professional Services in a post-pandemic world, this healthier year for TMT again points towards a period of continued recovery in the M42 and Solihull office market.

Mid-tier size bracket takes biggest share

Bouncing back from a disappointing 2023, the 5,000-10,000 sq ft size bracket reestablished itself over the last 12 months. With a total take-up of 66,393 sq ft in the bracket, its highest since 2021, the market has seen a 276% increase on its 2023 total.

Not only that, but this reaffirming year has also surpassed take-up in the 10-year average. The mid-tier bracket is now up 6% on the decade’s average, suggesting a return to pre-pandemic trends.

The 5,000-10,000 sq ft size bracket has also taken a 32% share of the total square footage for M42/Solihull in 2024. This is its biggest share since 2017, which was a similar share, a great positive considering how the area is often associated with the smaller-sized brackets. The figures suggest that if the mid-tier size brackets are healthy, so will be the entire Solihull office market.

Looking into 2025, we may see figures that solidify the mid-tier even further, especially when we acknowledge that 76% of sq ft taken in 2024 was in the size brackets above 5,000 sq ft.

M42-J5 recovers from record low years

The Junction 5, M42 area, encapsulating Solihull town centre, has recovered from back-to-back record low years in square footage take-up.

Following totals of 3,080 sq ft in 2022 and 2,372 sq ft in 2023, just 1% and 2% share of total take-up respectively, the Junction 5 total in 2024 was much more positive. This return to form shows a 66,861 sq ft take-up for a 32% share of the M42/Solihull office market total of 209,793 sq ft.

These figures are much more in-line with pre-pandemic averages, with the M42-J5 take-up for 2024 being the largest since 2018. Not only that, but the 32% share of the market’s overall total is the largest since records began.

Outlook for 2025

Business parks likely for more investment in 2025

With M42 J6 properties leading the total take-up for Solihull over the last three years, as well as the lack of availability showing in the town centre, it’s clear where investment is likely to go in 2025. Expect plenty of deals to be made at offices based at Birmingham Business Park and Blythe Valley Park, offering convenient motorway access from across the West Midlands and the town centre itself.

More mid-sized deals

Having had a year of reestablishment in 2024, with such a substantial amount of take-up in size brackets above 5,000 sq ft, we can look for many more mid-sized deals to be made in 2025. In comparison to previous years, it could be argued that it is this size bracket that will decide on the health of the Solihull office market.

Limited AIR space

With only three units remaining at AIR, we should see the newly refurbished office space filled relatively quickly in 2025. Those businesses wanting to be part of this landmark office building in Solihull town centre should make their move during the first half of the year.