Colmore still top drawer for city office deals – report
A strong second half to the year saw Birmingham’s office market bounce back from an unsteady start to 2025, according to research from property firm KWB.
The Birmingham Office Report from KWB showed total take up of 651,507 across 98 transactions in the year, below last year’s average-busting totals and slightly below the five-year average.
The largest deal of the year again revolved around the city’s Paradise district, with EY’s 93,780 sq ft lease at Three Chamberlain Square representing 14% of annual take-up.
Deloitte’s deal for 45,000 sq ft of space at One Centenary Way, also in Paradise, was the second largest deal of the year – with the wider Colmore Business District accounting for 70% of all city centre space, supported by sustained demand for larger, high-quality offices, according to Malcolm Jones, head of office at KWB.
“After a mixed first half, Birmingham’s office market finished 2025 with real momentum. With nearly three quarters of take-up completing in H2 – and a standout final quarter – occupiers showed renewed confidence, particularly for larger, high-quality workspace in core locations,” he said.
“The scale of activity in Q4, alongside major professional services commitments such as EY at Three Chamberlain Square, underlines that best-in-class space continues to outperform.”
KWB’s analysis highlights a shift in sector activity versus 2024, with professional services taking 383,134 sq ft – 59% of total annual take-up – and completing 48 of the year’s 98 transactions.
The report also notes a marked increase in serviced office operator activity, which totalled 79,963 sq ft in 2025, equating to a 12% share – the largest since 2021.
Looking ahead, KWB’s report suggests the Colmore Business District is likely to remain dominant, but with limited new, prime supply coming through, occupiers may increasingly need to consider alternative city-centre locations.
The report identifies 1 Beorma Place as the sole brand-new commercial office completing in 2026, alongside a pipeline of refurbished space including King Edward House, 35 Newhall Street, and 19 Cornwall Street.
“The key question is whether supply can keep pace with this returning confidence. With limited new prime completions in the near term, we expect occupiers to become more proactive, securing quality space earlier, considering best-in-class refurbishments and in some cases, broadening their search beyond the traditional core,” added Jones.
“For developers and investors, sustained rental growth will be central to unlocking the next wave of Grade A delivery and keeping Birmingham competitive.”
