Struggling year so far for Birmingham office market

New figures show that the Birmingham office market has struggled to gain momentum in the first half of 2026 – suffering its lowest second quarter since records began.

According to KWB’s latest Birmingham office market review, a total of 151,277 sq ft of space was leased over 32 deals in Birmingham during H1 2026. However, only 8 of these deals were recorded in the second quarter.

Furthermore, the average transaction size has dropped to 4,727 sq ft, down 29% on the 2025 figure of 6,648 sq ft.

Malcolm Jones, Director at KWB, said: “Despite securing a healthy amount of space in Q1, the lack of deals in Q2 has resulted in a disappointing start to 2026 for the Birmingham office market.

“A range of issues across the entire property industry, government and economy are continuing to have a negative impact. Plus, permanent downsizing by many operators and the popularity of hybrid working styles are also having a lasting effect.”

The largest deal of H1 was Eversheds Sutherland’s lease of 45,690 sq ft at Three Chamberlain Square, which also marked the full occupancy of Paradise. However, this deal was also a prime example of the continuing downsizing trend, with the legal services provider leaving their 80,000 sq ft offices at 115 Colmore Row.

Eversheds Sutherlands weren’t alone in choosing an address within Colmore Business District. In total, 58% of H1 take-up was located within this prime central location; something that is also limiting the number of deals due to demand outweighing supply.

Malcom continued: “The market still has the potential to make this year a story of two halves. There is a wealth of high-quality office space available in a variety of areas of Birmingham; including much more affordable options than those in Colmore Business District.

“Many businesses are choosing to extend leases rather than find new space, blaming the current uncertainties. I would encourage potential occupiers however to 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.

“On a more positive note, three deals were secured at Brindleyplace during H1, which hopefully signals an emerging trend of occupiers choosing CBD-adjacent space now that the Colmore Business District is running low on availability.”

The H1 2026 figures show striking similarities to H1 2025, in which only 28% of the year’s total leased space was accounted for. 2025 went onto to record a successful year for the Birmingham office market, including a landmark Q4.

You can read the full 2026 Birmingham office market review here.

For more information on office space in Birmingham, Solihull and throughout the Midlands, please contact:

Malcolm Jones

Phone

Email mjones@kwboffice.com

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