A commercial property specialist believes 2024’s highest annual figures for office leasing transactions in central Birmingham since 2017 will spark even more demand in the city this year.
Figures from the Birmingham Office Market Forum (BOMF) reveal the total office take up in 2024 was 854,672 sq ft, which is a major leap from 702,993 sq ft the previous year.
The Q4 figures totalled 137,118 sq ft and 96 transactions were concluded throughout the calendar year. The largest transaction in 2024 was the headline-grabbing 189,053 sq ft secured by Aston University at 10 Woodcock Street, followed by the BBCs 84,000 sq ft relocation at Typhoo Wharf in Digbeth, and the Global Banking Schools 68,192 sq ft at 1 Brindleyplace.
Charles Warrack, Partner at leading property consultancy Fisher German based in Colmore Row in Birmingham, said: “The figures for 2024 proved the city’s resilience and onward renaissance, given the changes being seen to the office sector, including hybrid and flexi working policies which are popular with many employers and indeed employees.
“2024 was the highest annual transaction figures in central Birmingham since 2017, showcasing a robust recovery from the COVID-19 years of 2020-2021 and beyond. It is encouraging to see an upward trend in every year following 2020 and I think this momentum will clearly continue in 2025.”
The figures for 2024 highlight that occupiers are looking for office space in central Birmingham and a good proportion of the figures have been boosted by the education sector.
Charles said 2024 highlighted the city’s resilience and popularity amongst students, which is superb news for employers who are attracting highly skilled staff to their workforces.
He said: “I am expecting the take up in the professional and financial sector to follow in the education sector’s footsteps, with a strong showing in 2025.
“From my conversations with landlords, building owners and occupiers, it is clear that employees, who are now being encouraged to return to the office as much as possible, albeit on both flexi and hybrid working practices, that a sense of community within an office is vital.
“To attract employees to the office, employers must curate a flexible environment and genuinely listen to employees’ needs.
“With hybrid working practices, it is important for employers not to ‘mandate’ a return to the office but encourage employees to return to the office by creating the right environment for employees to collaborate and thrive through teamwork – something that is challenging to achieve working from home.
“Many employees are resistant to a lack of flexibility, so employers need to cultivate a positive culture that embraces hybrid/flexi working. This approach not only reflects the future of work but also highlights the necessity of a physical office space to meet the needs of the modern workforce.
“Birmingham city centre is buzzing with positivity thanks to the major office schemes which have attracted occupiers such as the £1.2 billion development at Paradise which offers Grade A, world-class space. Occupiers are eager to build and expand for the future, especially as more employers encourage staff to return to the office.
“It is superb news that some big names are committing to Birmingham, such as the BBC moving to Digbeth, an area that is primed for growth and continued development. There is much encouragement for the 12 months ahead following the positivity of 2024, which is a real fillip for the region’s economy.
“From a landlord’s perspective, it is clear that if the right physical environment is created, then office transactions will happen. Office staff will be attracted to the office – build it right and they will come! Attractive office environments with the right benefits have never been more important and this year will very much demonstrate this.”
