With the UK hopefully progressing out of the pandemic, the role that our regional cities will play in the recovery of the economy is becoming ever more pertinent. From northshoring to new headline rents, the regions are giving us a number of reasons to be positive about their respective office markets and Birmingham in particular is enjoying a significant resurgence.

March and April 2021 were the two highest months of enquiries for the city’s office sector, not only since the onset of the pandemic, but in the last two and a half years. A healthy combination of the easing of restrictions, a roadmap to recovery and the success of the vaccine rollout have contributed to a significant surge in activity and we expect to see an uplift in deals coming through as a result of that over the coming months.

The requirements that we’re seeing echo the flight to quality narrative that we’ve been hearing over the course of the past year. Occupiers are seeking best-in-class office space, as they look to acquire workspace that facilitates collaboration and community, and is as much about culture as it is about productive output.

2020 saw top rents in the city centre grow by an impressive 7.2 per cent to £37 per sq ft, the highest rental growth of the big six regional office markets, and we predict that Birmingham will see rents of £40 per sq ft in the next three years.

While Grade A supply is currently significantly below the five-year average, three major schemes are currently on site: 103 Colmore Row, Paradise and Ten Brindleyplace. Together these total over 700,000 sq ft of Grade A space and are set to offer the very best in employee wellness and sustainability. This will in turn help satisfy the rising demand from occupiers seeking the best space while enabling the city to continue to accommodate further inward investment.

Beyond the city centre, the out-of-town market is also showing signs of growth, with Birmingham Business Park achieving a record headline rent in a recent Savills letting for Hillview Capital. Further afield, the wider M42 corridor (which encompasses the Solihull Town Centre and Blythe Valley Park) also continues to attract strong interest, driven by its convenient location and a limited pipeline of supply.

In terms of relocations, Birmingham grabbed headlines earlier this year when Goldman Sachs announced plans to create a new technology hub in the city, with the firm recently securing space at WeWork’s 55 Colmore Row site. The investment bank will join the likes of HSBC, PwC, General Dental Council and the Government, all of which have committed new job roles to the city in the recent past.

Next year will see the city host the Commonwealth Games, shining the spotlight on Birmingham on a truly global scale. While the pandemic has certainly brought its challenges, there really is a lot to be excited about in Birmingham and the West Midlands and we look forward to being a part of that.

Further information

Contact Jonathan Ottewell or Clare Bailey

Contact Savills Birmingham