Take-up

Regional office take-up in the first quarter of 2025 totalled 991,690 sq ft and was achieved through 193 transactions, 10% higher than the five-year Q1 average number of transactions. Take-up was 9% higher than Q1 2024 and also 6% higher than the five-year Q1 average.

Grade A and Prime take-up totalled 560,534 sq ft and accounted for 57% of the total. There were 56 transactions in total, which is the highest number for Q1 on record. Take-up was also 24% higher than the five-year Q1 average, continuing to illustrate the preference for best-in-class.

Supply

Total availability across the regions totals 10.7 million sq ft, a slight increase on the previous quarter. The regional vacancy rate now stands at 11.5%, which represents an increase of 20 basis points (bps). Secondary stock accounts for Grade A and Prime availability total 3 million sq ft and 1.8 million sq ft, respectively. While Grade A decreased, Prime availability has increased marginally by 5% due to recent development and refurbishment completions. The combined regional Grade A and Prime vacancy rate now stands at 5.3%, a decrease of 20 bps.

Take-up by business sector

The most active sector in the regions during Q1 2025 was the 'Public Services, Education & Health' sector, which leased a combined total of 230,669 sq ft and accounted for 23% of the total. This was through 20 deals, the largest of which was acquired by Network Rail at 2 Princes Square in Leeds for a total of 108,576 sq ft.

Another active sector in the quarter was the 'TMT' sector, which accounted for 22% of the total. The sector leased a combined total of 215,108 sq ft through 41 transactions, the highest number of quarterly deals in the sector since Q4 2023. The largest deal in the sector, and of the quarter, was in Manchester, where Autotrader acquired 130,000 sq ft at 3 Circle Square.

Rents

The highest headline rent that has been achieved during Q1 2025 was in Edinburgh, which reached £48 per sq ft, which is now on par with Bristol. Rental premiums are expected to grow by an average of 17% across the Big Six over the next five years based on current rental levels, with headline rent projected to reach a record high in Bristol of £54 per sq ft by 2029, and in Manchester, Birmingham and Edinburgh of £53 per sq ft. Savills expects that if a new build pre-let was to be secured, this could further increase headline rent in excess of £55 per sq ft in the coming years.

Interested in other areas of the UK?

View all of our latest Q1 2025 Occupational Office Data research here.