Solihull Market Report

Yield Range

6-8%

Vacancy Rate

Active Deals

Outlook

Neutral

Solihull is a prosperous borough in the West Midlands, located southeast of Birmingham, with a population of approximately 215,000. It is one of the most affluent local authorities in the West Midlands and hosts Birmingham International Airport, Birmingham International Railway Station (now Birmingham Curzon Street precursor) and the NEC Group's exhibition and arena venues. The business park market is well established, with Cranmore Business Park, Blythe Valley Park and Birmingham Business Park offering modern multi-let office accommodation adjacent to the M42. Solihull benefits from strong road and rail connectivity including direct links to Birmingham city centre and London via the M40 and West Midlands rail services.

Yields & Returns

Solihull office yields are estimated at 6-8% for secondary multi-let business park stock, reflecting the value-add repositioning opportunity in a market where prime rents have been largely static. Prime yields for well-let office stock with long unexpired lease terms are tighter, at approximately 5.5-6.5%. The sector has attracted value-add buyers such as Seneca Property who target discounted acquisition prices relative to replacement cost, with yield compression potential as occupier demand absorbs available space.

Vacancy & Supply

Vacancy Rates

Solihull office vacancy across business park stock is estimated at approximately 9-12%, broadly in line with the wider West Midlands regional office market. Grade A vacancy is lower at approximately 5-7%, while older stock with lower amenity levels accounts for the majority of available space. Cranmore Business Park and the wider M42 corridor office market benefit from occupier preference for out-of-town space with car parking, which has been resilient relative to city centre office markets.

Supply Pipeline

New office development in Solihull is limited, supporting gradual absorption of existing vacancy over the medium term. Blythe Valley Park represents the main developable land for new commercial space in the borough. The planning environment supports commercial development near the airport and key junctions of the M42.

Competitor Activity

Seneca Property completed its fourth acquisition of 2026 with the purchase of two Solihull office assets - Dominion Court on Station Road and Pegasus at Cranmore Business Park - in April 2026. Immediate leasing activity was reported at both assets. This is part of a wider pattern of mid-market investors targeting repriced regional UK office assets with active management potential.

Firm	Activity	Asset	Detail	Value
Seneca Property	Acquisition	Office	Seneca Property acquired Dominion Court on Station Road and Pegasus at Cranmore Business Park in Solihull as its fourth transaction of 2026. Deal value was not disclosed. Immediate leasing activity was underway at both assets.	Undisclosed

Demand Drivers

Key demand drivers for Solihull's office market include proximity to Birmingham Airport, the NEC and well-connected motorway junctions (M42, M6, M40), making it a preferred location for regional headquarters and distribution-linked businesses. The Advanced Manufacturing Research Centre and the broader manufacturing supply chain support office and industrial demand. Professional services, insurance, automotive and logistics firms make up much of the occupier base. Solihull's affluent residential base and retail offer at Touchwood Shopping Centre improve the overall working environment for occupiers.

Rental Market

Office rents in Solihull business parks range from approximately £18-£26 per sq ft for Grade A stock on schemes such as Blythe Valley Park and Birmingham Business Park, to £12-£18 per sq ft for secondary multi-let stock including Cranmore Business Park. Rents have been broadly flat since 2022 but tight Grade A supply is expected to support modest rental growth in the best-specified buildings. Incentive packages including rent-free periods of 12-18 months on 5-year leases remain common for secondary stock.

Employment & Economy

Major local employers include businesses around Birmingham Airport, JLR (Jaguar Land Rover) whose global headquarters is in Whitley, Coventry (nearby), and the NEC Group. Solihull Council is a significant public sector employer. The professional and financial services sector is represented by firms using the M42 business park corridor. Unemployment in Solihull is below the national average at approximately 3.2%.

Migration & Demographics

Solihull has one of the highest median household incomes in the West Midlands, supported by a large proportion of professional and managerial workers. Population is relatively stable with low residential vacancy. The borough attracts workers from Birmingham and the wider region for its quality of life, good schools and transport links.

Transport & Connectivity

Solihull benefits from excellent multimodal connectivity. Solihull Railway Station provides direct services to Birmingham New Street and London Marylebone. Birmingham International Station connects to the National Rail and airport. The M42 motorway provides access to the M6 and M40 within minutes. Cranmore Business Park and the wider south Solihull office market are predominantly car-accessed, with good car parking ratios that support occupier demand from businesses requiring staff to commute from across the wider West Midlands region.

Key Risks

Key risks include the continued preference by some occupiers for Birmingham city centre or hybrid home-working arrangements, reducing demand for traditional business park office space. Secondary stock with poor amenities and low EPC ratings faces structural headwinds from occupiers prioritizing sustainability credentials. The NEC and airport catchment area is sensitive to travel and events sector volatility. Wider regional economic conditions in the West Midlands - including the ongoing adjustment in the automotive supply chain - could affect occupier demand.

Outlook 12–24 Months

Solihull's office market is expected to see gradual improvement as the supply of new space remains very limited and existing vacancy in well-located assets is progressively absorbed. Value-add acquisitions by active investors such as Seneca Property, with immediate leasing activity, support a cautiously optimistic short-term outlook. The M42 corridor is likely to retain its appeal for occupiers requiring proximity to Birmingham Airport, the NEC and the motorway network. Rental growth will be driven primarily by Grade A stock scarcity, while secondary assets will continue to require incentive packages.

Sources

The Business Desk, Seneca Property completes fourth acquisition of 2026 with Solihull office deals ↗JLL, 2026 UK Commercial Real Estate Investment Predictions ↗Stephenon Harwood, Sector trends and deal dynamics in UK real estate M&A ↗