The ‘big 10’ UK regional office markets recorded a surge in leasing activity in Q3 2024, according to the latest data from BNP Paribas Real Estate.
Take-up in the big 10 markets increased 35.6% year-on-year to reach 1.47m sq ft – the highest quarterly take-up since Q4 2021. Activity was boosted by a number of deals over 50,000 sq ft across Manchester (pictured) and Birmingham.
The government/education sector accounted for 27% of take-up in Q3, followed by professional services (25%) and banking/finance (17%).
Prime rents increased 6.9% year-on-year on average across the big 10 regional markets with Bristol leading the way at £48/sq ft, followed by Edinburgh (£46/sq ft), Manchester (£44/sq ft), Birmingham (£42.50/sq ft) and Glasgow (£39.50/sq ft).
More than a third of office space under construction has already been pre-let, with further pre-let deals under offer and expected to complete in Q4, according to BNP Paribas Real Estate.
Josh Arnold, regional office markets research at BNP Paribas Real Estate, said: “The latest leasing data shows an encouraging shift in activity, with year-to-date (Q1-Q3) take-up levels now the highest since before the pandemic. Take-up in Q3 was boosted by significant deals over 50,000 sq ft.
“However, despite sizeable requirements across key regional cities, question marks remain over whether this momentum can last given the limited pipeline of Grade A stock under development. The latest prime rental figures underscore the ongoing ‘flight to quality’ within regional office markets, as organisations increasingly seek out high-spec, well-located spaces.
Simon Williams, head of national markets at BNP Paribas Real Estate, added: “Regional office markets are receiving recognition they deserve, and for good reason. These cities not only offer strong talent pools but also provide vital infrastructure, connectivity, and quality of life that can drive business success.
“The rise in rental growth in cities like Bristol, Edinburgh, and Manchester reflects a broader trend where occupiers are increasingly taking space across strategic locations that support their long-term goals. For occupiers looking to establish a lasting footprint outside of London, these thriving hubs present unique opportunities to attract top talent and build resilient operations.”
