Broad Street in Birmingham is one of the city’s most vibrant and dynamic areas, known for its rich blend of office spaces, retail opportunities, and leisure facilities.

As a major commercial hub, Broad Street attracts businesses from diverse sectors, thanks to its prime location, strong transport links, and proximity to key developments like Brindleyplace and Paradise Birmingham.

This guide explores the commercial property market on Broad Street, including office rents, recent retail deals, and the growing leisure sector.

Overview of Broad Street

Broad Street is situated in Birmingham’s city centre, extending from Five Ways to the ICC (International Convention Centre). It serves as a key route for both business and entertainment, connecting the central business district with areas like Edgbaston. The street is home to a mix of grade A office spaces, restaurants, bars, and entertainment venues, making it a lively spot throughout the week.

Office Market on Broad Street

Broad Street has become a sought-after location for companies looking for high-quality office space in Birmingham. The area benefits from proximity to Birmingham New Street Station and the ongoing HS2 developments, which are expected to further improve connectivity.

Office Rents and Recent Deals

As of 2023, grade A office rents on Broad Street range from £30 to £36 per square foot (psf) . This is competitive compared to Brindleyplace and Colmore Row, where rates can exceed £40 psf.

A notable deal includes HSBC UK moving its headquarters to 1 Centenary Square, near Broad Street, occupying 210,000 square feet of office space in 2018. This has set a precedent for other large companies considering the area.

HM Revenue & Customs (HMRC) has also made a significant investment by leasing space at Arena Central, just off Broad Street. This move has reinforced the area’s appeal to blue-chip tenants looking for central and modern office space.

Retail Market on Broad Street

Retail on Broad Street has seen a shift over the years, with many spaces transitioning to food and beverage outlets to cater to the increasing daytime office population and evening visitors. The demand for retail space is driven by the steady flow of tourists and professionals, particularly near landmarks like the Sea Life Centre, Symphony Hall, and Arena Birmingham.

Retail Rents and Trends

Retail rents on Broad Street typically range between £60 and £85 psf depending on the unit size and location .

Recent openings include Costa Coffee and Greggs, which have taken smaller units on the street to serve the morning commuter crowd and the lunchtime rush.

Demand for larger retail units has shifted, with new developments like Paradise Birmingham offering modern retail spaces that complement Broad Street’s more traditional outlets. This has allowed retailers to maintain a strong presence while benefiting from pedestrian footfall from nearby offices and attractions.

Leisure and Hospitality on Broad Street

Broad Street is synonymous with Birmingham’s nightlife, but it has also evolved into a key area for hospitality and leisure developments. Its mix of bars, restaurants, and hotels attracts both tourists and local residents, making it a lucrative spot for businesses in the leisure industry.

Key Developments and Deals

Park Regis Birmingham, a four-star hotel, opened on Broad Street in 2016, adding 253 luxury rooms and a rooftop restaurant. This investment marked a significant addition to Broad Street’s hotel offerings, catering to business travellers and tourists.

In 2022, the Reflex nightclub, a staple of Broad Street’s nightlife, was redeveloped into a boutique bar, reflecting the area’s ongoing shift towards more upscale hospitality options. Such transitions show a trend towards premium dining and leisure experiences.

Leisure unit rents on Broad Street are typically around £20 to £40 psf, depending on size and location. Units closer to Brindleyplace and the canals often attract higher rates due to increased footfall from both tourists and office workers.

Connectivity and Future Developments

Broad Street benefits from excellent connectivity, being within walking distance of Birmingham New Street Station and Five Ways Station. It is also well-served by trams thanks to the West Midlands Metro, which extends along Broad Street and connects to the wider Midlands network.

HS2 and Connectivity Boost

The HS2 project, which will significantly reduce travel times between Birmingham and London, is set to have a positive impact on property values along Broad Street. The area’s proximity to Curzon Street Station, the future HS2 terminal, is expected to attract more businesses looking for high-quality office space.

Paradise Birmingham, a £700 million redevelopment just off Broad Street, continues to transform the city centre with new office, leisure, and retail spaces. It has drawn companies like DLA Piper and PwC, which benefit from the proximity to Broad Street’s amenities.

Key Investment Opportunities on Broad Street

Broad Street offers various investment opportunities for commercial property investors, particularly in the office and leisure sectors:

Offices: With a steady demand from corporate tenants, investors can expect good yields from grade A office spaces. The arena district near Broad Street is particularly attractive due to its central location and accessibility.

Leisure Properties: Investing in leisure units along Broad Street can be lucrative, given the area’s thriving nightlife and daytime attractions. Properties catering to bars, restaurants, and cafés remain in high demand, especially those near the canal side.

Mixed-Use Developments: The rise of mixed-use developments along Broad Street, combining retail, office, and residential spaces, offers a diversified investment opportunity. These developments attract a steady flow of tenants across different sectors.

Challenges Facing Commercial Property on Broad Street

Competition from New Developments: The development of new commercial districts like Paradise Birmingham and Smithfield means Broad Street must adapt to maintain its appeal. Modern developments may attract businesses seeking newer facilities.

Shift in Retail Demand: The shift towards e-commerce has impacted traditional retail demand on Broad Street. Retailers are increasingly focusing on experience-driven spaces, such as showrooms or combined café-retail spaces, to attract footfall.

Rising Rents: While rental rates on Broad Street are competitive, the rising demand for prime locations has led to incremental rent increases. This can present challenges for smaller businesses but is offset by the area’s high visibility and foot traffic.

Conclusion: Broad Street’s Role in Birmingham’s Commercial Market

Broad Street Birmingham is a cornerstone of the city’s commercial property market, offering a mix of office, retail, and leisure opportunities. Its central location, combined with the influx of investment in nearby areas like Brindleyplace and Paradise, makes it an attractive destination for businesses and investors alike.

As HS2 nears completion and new developments continue to enhance the area’s appeal, Broad Street is expected to remain a key hub for commercial activity in Birmingham. For investors and businesses seeking a central location with strong growth prospects, Broad Street offers a dynamic environment with numerous opportunities for long-term returns.

By staying informed about rental trends and market dynamics, commercial property stakeholders can leverage the strengths of Broad Street to their advantage, positioning themselves for success in Birmingham’s competitive property market.