City office market entered 2026 with ‘renewed confidence and momentum', expert reveals

An expert from Fisher German has revealed that Birmingham office space is now showing renewed confidence and a clearer sense of direction after several years of economic uncertainty.

According to Charles Warrack (pictured), Partner at Fisher German’s Birmingham office, demand for prime Grade A space remains strong, particularly from professional services firms while sustainability, high-quality specifications and flexible layouts are increasingly shaping occupier decisions.

He said: “Birmingham’s office market entered 2026 at a pivotal moment. After several years shaped by economic uncertainty and evolving workplace expectations, the market is showing renewed confidence and a clearer sense of direction.

“Total take-up in central Birmingham reached 651,507 sq ft across 98 deals in 2025. While below the post-2020 high of 843,218 sq ft recorded in 2024, it represents a return to more normal activity levels and provides a strong platform for the months ahead.

“That activity reflects a more stable economic backdrop and a return to strength from professional services firms, which continue to form the backbone of Birmingham’s occupier market.

“Looking ahead to the remainder of 2026, the outlook for the city’s office sector appears positive, particularly for well-located Grade A space.

“Demand remains strong for high-quality buildings with strong sustainability credentials and the balance between supply and demand for prime stock continues to support rental growth at the top end of the market.

“The defining trend shaping the next phase of Birmingham’s office market is the continued ‘flight to quality’.

“Occupiers are increasingly prioritising buildings that deliver high environmental standards, modern amenities and flexible working environments.

“In practical terms, this means that environmental performance is no longer optional. EPC ratings of B or better are increasingly viewed as the minimum requirement as companies seek space that aligns with their net zero ambitions and Environmental, Social and Governance (ESG) commitments.

“Buildings that combine strong sustainability credentials with high specification and good connectivity are attracting the greatest interest from occupiers.

“For landlords and developers, this is creating a more pronounced two-tier market.

“Refurbished and newly delivered Grade A buildings are commanding strong demand and premium rents while older, less efficient stock is facing growing pressure to be upgraded or repositioned.

“At the same time, Birmingham’s economic diversification is likely to play an important role in shaping demand through 2026 and beyond. While professional services firms remain key occupiers, the continued growth of sectors such as life sciences, technology and innovation is broadening the city’s occupier base.

“Developments such as the Birmingham Health Innovation Campus highlight how the city is attracting investment in emerging sectors and creating new types of workspace tailored to research and collaboration. This evolution is helping to strengthen Birmingham’s position as one of the UK’s most important regional business centres.

“Another encouraging sign for the market is the strengthening pipeline of transactions. Several significant lettings are understood to be progressing, suggesting that the renewed momentum seen in the second half of 2025 will continue this year.

“For the city’s property market, the challenge now is ensuring that the supply of high-quality, sustainable office space keeps pace with occupier expectations.

“If that balance can be maintained, Birmingham is well positioned to build on its recent momentum. With a diverse economy and increasing demand for best-in-class workspace, this could be the year which marks the beginning of the next growth phase for the city’s office market.”