Photo by Paul Cuoco on Unsplash
Birmingham is no longer content to play second fiddle. In the race for prime office rents, the city has made impressive gains, narrowing the gap with Manchester and positioning itself as a legitimate contender for regional dominance.
While Manchester holds the top spot with rents at £44 per square foot, Birmingham is snapping at its heels with a scintillatingly close £42.50 per square foot. This isn’t just progress – it’s a seismic shift, highlighting Birmingham’s growing clout in the commercial property market.
A Tale of Two Powerhouses
Birmingham and Manchester have long been titans of British industry. From their industrial roots to their modern transformations, these cities have shaped the UK’s history – and its future. Once pillars of the Industrial Revolution, they’re now vibrant hubs of culture, commerce, and innovation, vying for attention on the national stage.
Birmingham: ‘The Workshop of the World’
Back in the 19th century, Birmingham earned its nickname, ‘The Workshop of the World,’ (otherwise known as ‘The City of a Thousand Trades’). Small-scale workshops dominated its streets, crafting everything from fine jewelry to groundbreaking steam engines. Its bustling canal network – busier than Venice’s at its peak – fueled trade and cemented Birmingham’s role as a key player in British industry.
Manchester: ‘Cottonopolis’
Photo by Courtney Cantu on Unsplash
Meanwhile, Manchester was spinning its way to global dominance. Known as ‘Cottonopolis,’ the city thrived as the beating heart of the world’s textile industry. Powered by cutting-edge technology, an influx of workers, and a network of mills, Manchester boomed. The Manchester Ship Canal – completed in 1894 – sealed its status as a trading powerhouse, directly linking the city to international markets.
From Decline to Revival
The mid-20th century brought about quite the industrial reckoning. Deindustrialization hit both cities hard, shuttering factories and leaving communities reeling. Still, Birmingham and Manchester didn’t wither – they adapted.
Birmingham turned its focus to financial and professional services, leveraging its central location and stellar transport links. Urban renewal projects, like the Bullring and Brindleyplace, revitalized the city’s landscape, while cultural landmarks like the Library of Birmingham underscored its ambition. Birmingham’s universities have also played a key role, transforming it into a hub of research and innovation.
Manchester leaned heavily into its creative soul. From iconic music acts like Oasis and The Smiths to MediaCityUK’s emergence as a media hub, Manchester reinvented itself as a cultural and creative powerhouse. Regeneration projects brought fresh energy to neighborhoods like Ancoats and the Northern Quarter, blending history with cutting-edge design.
Birmingham’s Meteoric Rise
Birmingham’s steady climb in the prime office rent rankings is no fluke. A winning combination of affordability, ambition, and infrastructure is driving its success. The city boasts a highly skilled workforce and lower costs compared to London, making it a magnet for businesses. Developments like 103 Colmore Row and Paradise, for example, demonstrate Birmingham’s commitment to delivering top-tier office spaces that rival anything in the capital.
As Neil Ormesher, CEO of Accounts and Legal, notes, “Birmingham reportedly saw 42,400 new businesses incorporated between 2017 and 2022. Although the city recorded a higher number of business closures (39,220), the upcoming arrival of HS2 and its burgeoning reputation for world-class office spaces are expected to drive future growth. As investors and startups increasingly look beyond London, Birmingham’s strategic location and ambitious regeneration projects make it an appealing choice.’
And then there’s connectivity. The much-anticipated HS2 rail project has – despite its delays – already shifted perceptions of Birmingham as a strategic hub. Businesses now see the city as a cost-effective, yet well-connected alternative to London, offering up easy access to the capital and the rest of the UK. Birmingham is no longer just the ‘second city’ – it’s becoming the smart city.
Manchester: The Reigning Champion
Manchester isn’t resting on its laurels. With its diverse economy and flourishing media sector centered around MediaCityUK, it remains the regional heavyweight. Premium developments like NOMA and Mayfield ensure the city continues to attract top-tier tenants.
Manchester isn’t just holding its own in prime office rents – it’s leading the charge in new business growth. According to research, Manchester saw 28,045 new businesses incorporated between 2017 and 2022, the highest number outside London during that period. The city’s diverse economy, strategic location, and strong transport links, combined with its thriving digital industries and life sciences sectors, have made it a magnet for startups and investors alike.
But rising rents and low vacancy rates are starting to test Manchester’s dominance. Businesses are increasingly weighing up their options, and Birmingham’s slightly lower rents and comparable amenities make it an enticing alternative.
Even so, Manchester’s established reputation as the UK’s ‘Northern Powerhouse’ gives it a distinct edge; its infrastructure, cultural buzz, and track record make it a tough act to follow. Birmingham is gaining ground, but Manchester’s resilience keeps it ahead – for now.
Regional Cities on the Rise
The Birmingham-Manchester rivalry reflects a larger trend: regional cities are stepping out of London’s shadow. With prime rents in major UK cities rising by 7.6% last year – the biggest increase in two decades – businesses are rethinking their strategies.
For companies, the choice comes down to priorities. Both Birmingham and Manchester offer up state-of-the-art office developments, talented workforces, and rich cultural appeal. While London remains a global juggernaut, regional cities are proving they’re more than capable of taking the spotlight.
Fierce Rivalry or Friendly Competition?
Is Birmingham ready to overtake Manchester? Not yet, but it’s getting close. The city’s progress is undeniable, and its ambition knows no bounds.
For businesses, the decision boils down to what they value most. Manchester offers up prestige, a dynamic media scene, and established infrastructure; Birmingham, on the other hand, brings fresh opportunities, a more affordable price tag, and room to grow.
One thing is certain: this is no longer a one-horse race. The competition between Birmingham and Manchester is heating up, and both cities are raising the bar. Whether it’s the legacy of ‘The Workshop of the World’ or the resilience of ‘Cottonopolis,’ these two giants are proving that the UK’s regional cities are where the action is.