Office take-up across the ‘big six’ regional office markets hit a six-year high in Q3 2024, according to the latest data from Savills.
City centre leasing activity in Birmingham, Bristol, Edinburgh, Glasgow, Leeds and Manchester hit 1.2m sq ft in Q3 – up 38% year-on-year and the highest Q3 take-up since 2018.
In Birmingham (pictured), take-up rose 165% year-on-year in Q3 thanks to Aston University taking 190,000 sq ft at 10 Woodcock Street and Global Banking School taking 68,000 sq ft at 1 Brindley Place.
The largest deal in Q3 was Bank of New York Mellon taking 197,000 sq ft at 4 Angel Square in Manchester, which is also the largest big six deal in the year to date.
Manchester (23%), Edinburgh (20%), Bristol (12%), Glasgow (8%) and Leeds (6%) all reported better Q3 take-up compared with the same period last year. Rents in Birmingham (4%), Leeds (3%) and Manchester (2%) have also increased over the course of the year.
James Evans, head of national office agency at Savills, said: “The UK regional office market has demonstrated remarkable resilience, with Q3 take-up reaching its highest level since 2018. While these figures are positive, we have noticed a slowdown in enquiries and decision making as we get closer to the budget.”
Office investment activity also increased in Q3 across the big six markets, with £1.02bn transacted – more than double the total recorded in Q2 2024. Some £2.1bn of assets changed hands in the period Q1 to Q3 2024 – 7% above the same time period in 2023, but 50% below the five-year average for the same time period.
James Emans, director, UK investment at Savills, said: “From an investment standpoint, volumes have been suppressed but we are now getting significantly more traction, which, given the positive occupational metrics, is not surprising. The combination of limited development pipeline and a dwindling supply of Grade A offices supports the projections of continued rental growth across the regional office markets, presenting opportunities for liquid and decisive investors.”
