Birmingham
Key stats
TOTAL TAKE-UP IN QUARTER (SQ FT)
+13% CHANGE ON LAST QUARTER
VACANCY RATE
+178BPS CHANGE ON LAST QUARTER
PRIME RENT PER SQ FT
0% QUARTERLY CHANGE
TAKE-UP (SQ FT)
Source: Avison Young
Birmingham take-up reached 194,847 sq ft in the first quarter of 2025, this is up 13% on the previous quarter however 27% down on the 10-year quarterly average. A strong OOT performance provided a boost to figures reaching 119,325 sq ft, the strongest OOT performance since Q3 2021. Conversely, the city centre market experienced its lowest level of take-up since Q1 2021 reaching 75,522 sq ft.
The Consumer and Private sector, driven by Boparan Restaurant Group’s 62,000 sq ft acquisition of Portland House, Solihull, drove demand levels in Birmingham in Q1 2025, accounting for 32% of take-up. The TMT & Creative sector follows accounting for a 21% share.
Driven by an increase in second-hand space, the vacancy rate increased to 11.9%, from 10.2% the previous quarter. We expect to see an uptick in office conversions to alternative uses in 2025, as landlords grapple with ageing stock, viability issues and evolving occupier requirements.
Rent frees on a 10 year lease moved in from 24 months to 18 months in Q1 reflecting the growing supply and demand imbalance of the best stock.
NOTABLE DEALS
Source: Avison Young
TAKE-UP BY SECTOR
Source: Avison Young
ANNUAL TAKE-UP (SQ FT)
Source: Avison Young
AVAILABILITY (SQ FT)
Source: Avison Young/CoStar
DEVELOPMENT PIPELINE (SQ FT)
Source: Avison Young, PMA, Glenigan
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