The Great Western Arcade: Repurposing Retail into Office Space

The demand for space in central Birmingham continues to grow and while new developments in the city are beginning to transform the landscape, there are some exciting opportunities to rejuvenate and repurpose some of Birmingham’s historic properties.

One of these opportunities is in the iconic Great Western Arcade, an iconic Victorian shopping arcade that is nestled in the heart of Birmingham’s Central Business District (CBD). It is a Grade II-listed shopping arcade that opened all the way back in 1876 and has been home to some of the city’s most loved independent retailers for years. Given its proximity to fashionable addresses like Colmore Row and Temple Row as well as transport hubs like Snow Hill train station, the Great Western Arcade is a prime spot to repurpose into modern office space.

While there has been no formal announcement confirming the extent of the works or closure of the arcade, recent planning submissions indicate a growing trend of repurposing historic retail spaces into office space. What we do know is that there will be a “partial refurbishment and remodeling” that will create “self-contained office units on the first, second and third floor.”  The plans show that the upper floors are set for offices, with retail being kept at street level with some tweaks to the rear elevation. This, for now, suggests that a mix of Retail and Commercial Office space will stay in place for now.

The Great Western Arcade is just one example of how retail spaces offer potential value to new office space. Retail destinations have always thrived on being in high footfall areas with great connectivity. In the case of the Great Western Arcade, being opposite Snow Hill and in the middle of the CBD is a big positive in terms of making it as easy as possible for staff to come into the office.

There is also the opportunity to work from an office in an iconic destination that carries a distinctive address. Companies are constantly looking for points of differentiation and tapping into the appeal of these characterful retail properties is a good way to stand out.

Finally, there is also the added sustainability benefit of repurposing existing buildings instead of building new ones. Data from Knight Frank’s Mid Year Review 2025 showed that “new build grade A availability in Birmingham increased by 50% year-on-year to 441,600 sq ft, a figure 2% above the 5-year average for the city.”

While there are certainly positives to be taken from the growth and demand in the city, if Birmingham is to remain committed to net zero goals and other carbon reduction commitments, more of these retrofit and refurbishment projects will have to take place. With retail seeing such a huge change in consumer behaviour, there will be opportunities to take existing buildings like shopping arcades or department stores and convert them into office space. Making use of these existing structures rather than building new ones is much more in line with sustainability and the circular-economy.

The Great Western Arcade is a structure that offers heritage and a location that rivals even some of the latest new builds in Birmingham. It is a mini case study of how older retail spaces can pivot to office space as the demand for quality space in the market continues to grow.

For developers, occupiers and the city as a whole, this kind of project presents a smart way to deliver high-quality commercial office space while retaining the original purpose and character of an iconic building in the city. It is a trend we are starting to see and expect to see even more of as we head into 2026.