Take-up

Q4 2021 take-up, totalling 122,443 sq ft, was 59% below the previous quarter's total. This was, however, 203% higher than the total take-up for Q4 2020.

Grade A take-up of 106,637 sq ft accounted for 87% of total take-up in Q4. The total annual take-up increased by 29% in 2021 but remained 9% below the five-year annual average for Birmingham City Centre.

Supply

Total supply decreased by 8% in the final quarter of the year to 1,482,522 sq ft. This follows the trend of falling supply in Birmingham City Centre. Availability has decreased in every year since 2010.

Prime Grade A supply increased this quarter by 42% to 377,322 sq ft. This is a result of the inclusion of 103 Colmore Row following practical completion in December 2021.

Take-up by business sector

The Serviced Office sector was the most active sector this year, accounting for 19% of overall take-up. This was boosted by the 41,000 sq ft letting with new flex space operator x+why at Six Brindleyplace.

The take-up by Insurance and Financial Services declined this year, recording 3% take-up in 2021, which was 5% down on the sector's 2020 share.

Rents

Prime rents increased by 5.4% in 2021 and currently stands at £39 per sq ft. Furthermore, the prime rent in the market has increased by 18% since 2017. Equally, average Grade A rents have increased significantly over the past six years. The average Grade A rent in 2021 was £23 per sq ft, representing a 2.2% increase on 2020 and 7.3% on 2019.

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