Offices, logistics and infrastructure: what’s next for the Midlands property market

The future is certainly looking bright for the region’s real estate sector, writes Rachel Leung, Head of Midlands at JLL.

That was the consensus from our recent Property Perspectives Event in Birmingham, as we brought together our industry experts to explore the dynamics and trends set to shape our region’s property market.

Off the back of a strong 2025 that saw the Midlands attract the highest level of foreign direct investment outside of London, there are plenty of reasons to be optimistic about 2026. Birmingham in particular is becoming an increasingly exciting place to live and work. 

Take the proposed Sports Quarter in the east of the city. Alongside a new state-of-the-art stadium for Birmingham City Football Club, it is set to bring billions of pounds into the city that will go towards new homes, leisure developments and sports science workspaces. 

So as Birmingham and the wider region continues to build positive momentum, what will be the defining features for our property market? 

The return to the office 

The rise of hybrid and remote working that we’ve seen this decade has been well-documented but this year we’re expecting there to be a real drive from businesses to return to office spaces. 

Our forecasts reveal that after a relatively quieter period for the office sector, it is set to regain top spot for deal activity in the region. This is a trend that we already saw in London last year, that is now flowing into Birmingham and other cities across the UK, with the usual suspects in professional services and finance likely to be driving this increase in take-up. 

But while there is an increase in demand, there is still a lack of new developments being progressed that will cause supply constraints. Rents will therefore continue to rise, with prime rates in Birmingham expected to hit £60 per sq ft by 2030. 

And as occupiers grapple with capital expenditure restraints, landlords will need to offer greater flexibility within leases in order to continue attracting the best businesses to their workspaces. Firms will also want stronger assurances on quality as they look to mitigate risk, with a lack of new supply causing many to increasingly prioritise recently refurbished spaces. 

Understanding these concerns, and being able to alleviate them, will be crucial if landlords are to capitalise on the opportunities as more businesses return to the office this year. 

Industrial and logistics remains a key strength 

Industrial and logistics is another area that will continue to provide a wealth of chances within our regional market. 

The sector performed strongly last year as we saw record rents achieved in both the East and West Midlands as demand continued to rise, and the current levels of interest we’re seeing from occupiers suggests that 2026 will be another year of increased take-up. 

This is in no small part due to the natural reach and transport advantages that come with our strategic location in the heart of the country. But there are other important factors for occupiers right now that need to be taken into consideration. 

As with offices, wider capital constraints mean industrial and logistics firms are also looking and how they can mitigate risk and be more methodical in their approaches. There is a heightened focus on not just quality but also a clear ability to scale within a premise. 

They are also looking at the potential of AI and automation within sites to drive efficiencies within their operations. At the end of the day though, it’s deliverability that is critical and communicating clearly to firms how developments can meet these criteria will be crucial as industrial and logistics remains a bright spot for activity in the Midlands. 

Infrastructure can be transformative 

While this activity will bring a whole host of benefits to our region, it’s infrastructure that can be truly transformative for cities like Birmingham. 

 You only have to look around the globe to cities like Lyon, Shenzhen or Nagoya to see the impact it can have. Like Birmingham these are all cities with a strong industrial heritage that have experienced strong local growth following major investments into their transport infrastructure. 

 HS2 could have a similar effect, with the potential of a 45-minute journey to London set to significantly improve the city’s connectivity. It’s not just about major national infrastructure projects like this though, local connectivity is also crucial and with the city’s tram network Birmingham has a strong foundation to build on. 

 Together all of this points to a regional market that will create plenty of opportunities for occupiers, landlords and developers.

The Midlands is starting to build a positive momentum when it comes to real estate but it’s now up to our organisations to capitalise on this.