Retail rents in Birmingham city centre have stabilised for the first time in five years, with some prime pitches recording modest increases as footfall returns to pre-pandemic levels. Data from the Local Data Company shows that vacancy rates on New Street and the Bullring have fallen to 7.2 per cent, down from a peak of 12.8 per cent in 2023.
The recovery has been driven by a combination of factors: the completion of the Midland Metro extension, which has improved connectivity to the city centre; a growing residential population in the core; and the continued strength of the hospitality and leisure sector, which has filled former retail units with restaurants, bars and experiential concepts.
For landlords, the stabilisation is welcome news after years of rental decline. Zone A rents on New Street are now holding at around £165 per sq ft, compared with £140 at the trough. However, the recovery remains uneven — secondary locations continue to struggle, and the gap between prime and secondary has widened considerably.
The arrival of HS2, expected to deliver its first services to Curzon Street by 2029, is already influencing occupier sentiment. Several national retailers have cited the improved connectivity as a factor in their decision to maintain or expand their Birmingham presence.
