Surge in commercial projects set to propel West Midlands construction

The West Midlands is poised for a significant construction boost, driven by a sharp rise in commercial developments—particularly in the office sector.

Glenigan’s latest research reveals a remarkable 2,293% increase in the value of approved office schemes in the three months leading to January 2025, highlighting growing investor confidence and a strong pipeline of future projects.

This was mainly due to approval for the £1,093 million Frasers Campus in Coventry (pictured) (Project ID: 22329855) but there is also a strong pipeline of work.

There are 242 office schemes with detailed planning permission and work due to start construction over the next 12 months.

This ranges from a £30 million extension to the MIRA Technology Park in Nuneaton (Project ID: 22353989) to the £67.8 million Drum office scheme in Birmingham (Project ID: 23016477).

Birmingham boost

Birmingham is traditionally the main hub for commercial work in the West Midlands. Deloitte’s latest Crane hire survey for the city found strong levels of office and student residential floorspace under construction in 2024 compared to previous years.  This included 814,574 sq ft of office space currently under construction.

There are also other major office and commercial developments coming up in the pipeline.

Plans have been approved for the £129 million Colmore Gate office scheme in Birmingham and work should begin this summer (Project ID: 23122303).

A £243 million redevelopment of the Rackhams Building in the city’s Temple Row is also expected to begin later this year (Project ID: 18426203).

Booking in for hotel work

Other parts of the wider commercial sector also look set to improve over the coming months.

There was a 55% rise in the value of hotel & leisure work in the West Midlands given detailed planning permission in the three months to January 2025.

This is boosting prospects with 318 hotel & leisure schemes expected to start construction over the next 12 months.

This programme of work ranges from a £15 million refurbishment of the Moon Under Water Pub in Wolverhampton (Project ID: 18436146) to a £31.3 million conversion of the King Edward House in Birmingham (Project ID: 19324316).

Wham BAM

Royal BAM is streets ahead of its rivals as the top contractor in the West Midlands with more than £1.5 billion worth of work.

Morgan Sindall is in second place with a £271 million order book bolstered by work in including a £48 million job for fit-out arm Overbury to refurbish offices at 125 Colmore Row in Birmingham (Project ID: 24091269).

Yorkshire-based Caddick has ventured south and amassed nearly £250 million worth of work in the West Midlands to rank third, but local contractors are also benefitting.

Malvern-based Speller Metcalfe is placed fourth with £200 million worth of work, including an £11.4 million redevelopment of Walsall’s Saddlers Shopping Centre (Project ID: 20149717) and Bromsgrove company Benniman has £95 million worth of orders including the £33 million Greenlight commercial development in Redditch (Project ID: 23285211).

Regional rise

With work in a range of commercial sectors helping contractors to fill their order books, the prospects for the West Midlands are improving.