Office take-up in Birmingham reached 371,897 sq ft in H1 2024 – a 12% increase on H1 2023, according to new research from Savills.
The half-year figure was up 4% on the five-year average and 2% up against the 10-year average. The majority (74%) of take-up was for prime and Grade A space – 20% higher than the 10-year long term H1 average of 62%.
Public services, education and health accounted for 38% of take-up, with telecommunications, media and technology (TMT) accounting for 36% of total take-up.
Ben Thacker, director of office agency at Savills Birmingham, said: “Birmingham’s office market has showcased strength in the first half of 2024. The projected future rental growth and a consistent 4% annual growth rate over the past decade affirms Birmingham as a leading destination for businesses and investors. The city’s unique profile due to its central location, excellent transportation links, access to talent and range of office stock on offer stands it in good stead for continued appeal throughout the second half of the year and beyond.”
Mark Walsh, EMEA head of corporate account management, global occupier services at Savills, added: “The commercial real estate landscape is evolving post-pandemic, with a clear shift in occupier demands. The scarcity of prime office spaces is becoming apparent, influencing both uptake rates and rental prices. Occupiers are now prioritising flexibility, quality, and sustainability in their work environments. This trend suggests that developers who can meet these new standards may find themselves at a competitive advantage, as businesses are willing to hold out for spaces that align with their updated criteria.”
