By Phil Bartleet, Head of Office at Bradley Hall Birmingham
The first half of 2025 has been an interesting period for Birmingham and the wider West Midlands commercial property market. Following a record-breaking 2024, this year has inevitably felt more subdued in comparison. Without a single landmark transaction to drive figures, overall activity appears lower, but what we are seeing is a return to a more balanced and sustainable level of performance.
What has been encouraging is the continued resilience across all major sectors. Offices, industrial, and retail space remain in demand, reaffirming Birmingham’s role as one of the UK’s most important economic hubs. Professional services have been particularly strong, accounting for 55% of take-up in Q1, and reinforcing the city’s reputation as a centre for legal, financial, and consultancy firms.
Offices: Flexibility Driving Demand
Office demand has remained steady, broadly in line with the five-year average. Central Birmingham’s prime occupancy has reached around 74%, a clear signal of recovery back to pre-pandemic levels. The real shift has been in occupier requirements. Businesses are increasingly seeking premium, flexible workspaces that support hybrid working.
The Colmore Business District continues to lead the way, accounting for 18 of the 38 deals so far this year. However, with much of this space now at or near capacity, I expect demand to gradually spill into alternative city locations during the second half of the year.
Industrial: A Sector Underpinning Growth
Industrial property remains a vital part of the region’s growth story. In H1, lettings reached 1.22 million sq ft, which is down on last year’s exceptional levels. Activity remains robust with multiple large units currently under offer. Demand has risen significantly, with requirements totalling nearly 9 million sq ft, and the supply of big box units has also increased. This sector continues to be driven by e-commerce, logistics, and the relocation of manufacturing operations.
Retail and Leisure: Steady Recovery
Retail has shown encouraging resilience, with vacancy rates holding at a low 7%. Well-located retail parks such as Selly Oak and mixed-use destinations like Longbridge continue to attract strong occupier and consumer interest.
At the same time, Birmingham’s leisure offer is expanding rapidly. From the opening of Society at One Colmore Row to Michelin-starred chef David Taylor’s KYND at Hampton Manor, the licensed and leisure market is playing a key role in enhancing the city’s attractiveness as a destination to live, work, and invest.
Looking Forward
Overall, the first half of 2025 has demonstrated the enduring strength of Birmingham’s commercial property market. Across every sector, we are seeing stable demand, rising rental values, and renewed investor confidence.
At Bradley Hall, my team and I are excited to continue supporting clients across the West Midlands, from acquisitions and disposals to leasing advice, ensuring we provide a comprehensive and full-service approach that matches the region’s dynamic and evolving market.
Contact us for property advice here: https://www.bradleyhall.co.uk/branches/birmingham/
