Traditional sectors create the foundation of the Birmingham office market; however, the city is seeing the growth of new alternative sectors such as food and education.
Revitalising Birmingham’s food landscape
The West Midlands has a rich food history; known for its diverse culinary heritage and innovation. From the rise of local markets to renowned food brands – Cadbury, HP Sauce and Typhoo Tea to name a few. It is now home to innovative organisations in agri-tech and food science, with a growing cluster of next-generation change agents driving the industry forward. There are currently 53 food and agri-tech startups in Birmingham, which include Whisk, Miss Macaroon, WaitHero, Meal Planner, and SEERGRILLS.
With the increasing impetus on food health, security, and sustainable practice across the food system, this is a pivotal point in time to ensure the region retains its food legacy and evolves to meet the demands of future generations. The Birmingham Food System Strategy (2022–2030) aims to transform the city’s food landscape into a sustainable, inclusive, and resilient system.
This strategy focuses on key areas like local food production, distribution, and healthy consumption, ensuring benefits for various neighbourhoods across Birmingham, with an emphasis on economic growth, community engagement, and attracting larger food brands. Economically, the strategy has the potential to revitalise areas with rich food market histories, like Smithfield, which is undergoing a £1.9 billion redevelopment project.
Revitalising areas with rich food market histories
The strategy promotes local food businesses and supports markets, positioning Smithfield to become a thriving food hub once again. By emphasising support for small and medium-sized enterprises (SMEs), the plan creates opportunities for local food entrepreneurs through business grants and incubation programmes.
Key features of the redevelopment include new public spaces, pedestrian-friendly designs, and a modern market space that honours its legacy. The project is expected to generate over 8,000 jobs, significantly boosting the local economy. With a focus on sustainability and community engagement, Smithfield aims to enhance Birmingham’s status as a vibrant city with a rich culinary culture.
Smithfield will honour the site’s rich history, dating back to 1166 when the first market charter was granted, laying the foundation for centuries of trade and exchange that shaped the city. The project will feature a new destination market surrounded by a vibrant leisure and restaurant offer, retail outlets, and 1.5 million square feet of commercial workspace to attract food-related businesses, fostering innovation and entrepreneurship.
The West Midlands has a rich food history; known for its diverse culinary heritage and innovation
Clare Bailey, Director, Commercial Research
Additionally, the project will deliver 3,000+ new residential homes and two new public squares, creating a diverse, green, mixed-use neighbourhood. This ambitious project is expected to create over 8,000 jobs and significantly boost the local economy, positioning Birmingham as a thriving city with a rich culinary heritage.
Smithfield will reconnect neighbourhoods that have been separated for decades, inviting people to converge around food, art and music. Food touches human health at every level, from the science behind nutrition, to sustainable growth and movement of food, to social and cultural connection.
With the new Bullring Markets at the heart – which are designed to draw businesses across the entire food system to cluster – the vision is to stimulate the next generation of exchange for Smithfield, that fosters collaborative innovation across the system, and drives Food (and adjacent transforming industries) forward.
Nearby Digbeth, known for its creative and innovative community, could also see a boom in artisanal food businesses, contributing to a unique local food culture that attracts both local and external consumers.
Improving access to affordable and healthy food is another core focus
Areas with higher food insecurity, such as Balsall Heath and Handsworth, could benefit from the establishment of local markets and community food programmes, ensuring residents have access to fresh, nutritious options. The strategy also encourages urban farming initiatives that could transform vacant lots into productive green spaces, further contributing to food accessibility while fostering community engagement.
Additionally, Birmingham’s commitment to sustainability is expected to attract larger food brands looking to align with ethical sourcing and environmental goals. For instance, commercial areas like Edgbaston, already a hub for retail and food businesses, could become a prime location for major food chains and supermarkets looking to integrate sustainable practices. This, in turn, could boost the local economy while offering residents a greater variety of food options.
Food destinations
The strategy also emphasises the creation of food destinations that celebrate local and international food cultures. Areas like the Jewellery Quarter and Moseley, known for their vibrant dining scenes, could become key food hubs hosting markets, festivals, and collaborations with well-known chefs. These initiatives would draw food enthusiasts from across the UK, positioning Birmingham as a top food destination. Collaboration and skills development are central to the strategy’s goals. By working with universities, colleges, and vocational schools, Birmingham can equip its residents with skills in food production, logistics, and management. This would benefit areas like Aston and Perry Barr, where workforce development is critical. As a result, the strategy would not only reduce unemployment but also ensure that Birmingham has a skilled workforce to support its growing food economy.
Clinical and academic ecosystems
Developed through a partnership between Bruntwood SciTech and the University of Birmingham, and closely aligned with the strategic alliance of Birmingham Health Partners, the Birmingham Health Innovation Campus (BHIC) sits at the heart of the city’s integrated clinical and academic ecosystem.
BHIC plays a pivotal role in driving nutrition and health innovation, aligning with the Birmingham Food Strategy’s goals of creating a healthier, more sustainable food system. Positioned as a hub for health and life sciences, BHIC fosters collaboration between academia, industry, and healthcare providers to address pressing challenges such as food insecurity, diet-related diseases, and sustainable food production.
The campus attracts leading companies like Procter & Gamble, Cadent, and Evotec, which are advancing research in personalised nutrition, food technology, and health diagnostics. By leveraging these corporate partnerships alongside cutting-edge research from institutions like the University of Birmingham and Birmingham’s NHS trusts, BHIC is at the forefront of delivering public health interventions and innovative solutions. These efforts contribute to the strategy’s vision of improving dietary health, reducing inequalities, and fostering a circular economy in the region’s food system.
The Birmingham Food System Strategy has the foundations in place to reshape the city by promoting economic growth, improving food access, and attracting national and international food brands. By focusing on sustainability, community engagement, and food innovation, Birmingham is well-positioned to become a leader in modern food systems, offering significant benefits to its diverse communities and establishing itself as a key player in the UK’s food industry.
The Rise of the Education Sector in Birmingham
Education boom in Birmingham
Birmingham’s education sector has seen a notable increase in leasing activity over the past four years, with institutions such as Global Banking School (GBS), QA IQ and Aston University expanding within the city.
Education has accounted for an increased proportion of the public services sector take-up, with 2022 and 2023 education deals accounting for 71% and 61%, respectively. Seven of the top ten largest deals since 2021 in the public services, education and health sector have been acquired by educational institutions, and all have been over 25,000 sq ft.
In 2024 year to date (YTD), the education sector has seen an increase in activity. Take-up was 106% higher than the long-term average, impacted by two deals. Education in 2024 accounted for 75% of the public services sector, totalling 308,000 sq ft in Q1–Q3 2024.
Notable deals during this period include Aston University which acquired 190,000 sq ft at 10 Woodcock Street from Birmingham City Council, and GBS acquiring a total of 68,000 sq ft at 1 Brindley Place in Q3 alone. Q1–Q3 2024 also saw an increase of 139% on the previous full year of education take-up, although this has mainly been driven by Aston University and GBS.
Over the previous four years, the education sector has also accounted for the majority of total take-up in Birmingham, by consisting of four of the top ten largest deals.
The education sector acquires larger floorplates than many other sectors
Clare Bailey, Director, Commercial Research
The sector continues to follow the trend set in previous years, whereby institutions acquire larger floorplates than other sectors. For example, since 2021, 44% of education deals have been for spaces above 20,000 sq ft, when compared to the professional sector, there is only 5% of deals which are larger than 20,000 sq ft.
Birmingham’s educational take-up from 2021-YTD 2024 totals 598,000 sq ft across 25 deals during this period. By way of comparison, Manchester’s educational take-up for the same period totals 342,000 sq ft, which accumulated over 21 deals. Birmingham’s take-up is 75% higher than Manchester, which is the second highest in the Big 6, further demonstrating Birmingham’s dominance as an educational hub within the regional cities.
Birmingham has a graduate retention rate of 34%, with 28% of these graduates entering the education sector each year – 54% higher than the UK average. Therefore, as this is intrinsically linked with office take-up, it is no surprise that education dominates the Birmingham occupational market.
Growth of the Legal Sector
The legal sector has been increasing its presence within Birmingham over the past five years, with reputable names such as Mills & Reeve and Trowers & Hamlins acquiring space in excess of 15,000 sq ft in the past year.
In the period 2023–2024 YTD, the legal sector has acquired 118,000 sq ft of office space, accounting for 65% of the wider professional sector take-up. In 2023, there was 82,000 sq ft of legal take-up, which is 34% higher than the five-year average for the legal sector take-up in Birmingham.
The sector has been continuing to increase its preference towards best-in-class office space, with 80% of 2024 YTD legal take-up being for Grade A or Prime buildings, whilst also commanding rents above £40 per sq ft.
The number of legal sector deals as a proportion of total professional deals has been consistent over the past five years, accounting for an average of 41% of professional deals transacted.
During the next five-year period, there will be 155,000 sq ft of legal lease events in Birmingham, which will undoubtedly lead to the legal sector looking towards acquiring best-in-class space in an already undersupplied prime market. It is expected that the sector will continue to lead in progressing the rental growth within Birmingham.