Office take-up across the ‘Big Nine’ UK regional markets in Q1 2025 was inline with the 10-year quarterly average, according to new data from Avison Young.
Activity across Birmingham, Bristol, Cardiff, Edinburgh, Glasgow, Leeds, Liverpool, Manchester and Newcastle, reached 2.1m sq ft in the first quarter.
The largest letting was DWP signing for 170,000 sq ft at 1 Pilgrim Place in Newcastle (pictured). Other key deals to complete in the quarter included Auto Trader signing a 130,000 sq ft pre-let at 3 Circle Square in Manchester and Network Rail agreeing an owner-occupier deal at Princes Exchange, Leeds, for 109,000 sq ft.
There were more than five deals of more than 25,000 sq ft in the out-of-town regional markets in Q1, leading to the highest level of quarterly take-up since Q3 2021.
Across the ‘Big Nine’ regional markets, prime rental growth rose quarter-on-quarter by 2% to £39.53/sq ft, reflecting annual growth of 6%.
Paul Broad, managing director of Avison Young’s national offices team, said: “It’s encouraging to see that regional office markets are holding steady, showcasing stability and resilience in what is otherwise a turbulent economic outlook. There is a clear shift towards quality space, with occupiers seeking well-located offices, fitted out with sustainability in mind, with almost half of new developments already pre-let.
“It’s also great to see out-of-town markets continuing to gain momentum, as occupiers look for a cost-effective, accessible alternative to city centre rent hikes. We can really see confidence returning to the regional office markets, and we expect this to continue into Q2 and beyond.”
