National Occupier
Q3 TAKE-UP 5% AHEAD OF Q2
The Professional sector dominated take-up
Whilst Q3 take-up levels failed to reach the 10-year average for the second consecutive quarter, levels did exceed the previous quarter reaching 1.7m sq ft. Occupier preference for centrally located offices with excellent amenity and transport connectivity continues with 66% of Q3 demand occurring in city centre locations.
Overall vacancy dropped marginally to 10%, primarily driven by a decrease in Grade A availability, for which vacancy stands at 2%. Constrained Grade A supply will continue be a key feature across the Big Nine going forward, indeed, just 694,000 sq ft is due for completion in 2026, well below the historic average of 2.2m sq ft of deliveries seen in per annum between 2020-2024.
With demand focused on best-in-class spaces, prime rents continue to see significant uplifts across supply constrained markets. Birmingham, Bristol, Cardiff and Leeds all reported rental growth in Q3, driven by developments with strong sustainability and wellbeing credentials. The prime average rent across the Big Nine stands at £40.72 per sq ft, reflecting quarterly growth of 2.1% and annual growth of 5.5%.
KEY DEALS
Source: Avison Young
TOP TENANT SECTORS Q3
Source: Avison Young
CENTRAL LONDON TAKE-UP (SQ FT)
Source: Avison Young
OFFICE AVAILABILITY RATES
Source: Avison Young
PRIME HEADLINE RENTAL GROWTH % (Y/Y)
Source: Avison Young
12-MONTH ROLLING TAKE-UP
Source: Avison Young
National Investment
Q3 '25 Investment Volumes -18% Below Q2
Prime Yields Remain Stable
Overseas Investors Largest Buyer Group Over The Last 12 Months
Against a challenging macroeconomic backdrop, investor sentiment remains cautious with Q3 investment volumes reaching £262m, this is 18% below Q2 and 56% below the 10-year quarterly average. A fall in the overall number of transactions contributed to muted activity with just 14 recorded, the lowest level since Q3 2023.
The largest transaction of the quarter was Princes Group’s £57m acquisition of the Royal Liver Building, Liverpool for their own occupation. Two more deals in excess of £50m completed reflecting investor appetite for centrally located landmark buildings.
Over the last 12 months, overseas investors have increased their share of purchases to 35%, up on 28% over the previous 12 month period. Currency weakness, coupled with the UK’s relative safe and stable status, in comparison to other global markets adds to the UK’s appeal. Looking ahead, investors will be watching the Autumn budget closely and its impact to financial markets. Indeed, 10-year gilts have already seen declines driven by media briefings from the Treasury that an austerity budget is coming, reassuring bond markets.
LARGEST INVESTMENT DEALS OF Q3 2025
Source: Avison Young
CENTRAL LONDON INVESTMENT ACTIVITY
Source: Avison Young
LONDON OFFICE ANNUAL INVESTMENT ACTIVITY 2010 - Q3 2025
Source: Avison Young
CENTRAL LONDON YIELDS Q3 2025
Q3 '25 Investment Volumes -18% Below Q2
Prime Yields Remain Stable
Overseas Investors Largest Buyer Group Over The Last 12 Months
Q3 '25 Investment Volumes -18% Below Q2
Prime Yields Remain Stable
Overseas Investors Largest Buyer Group Over The Last 12 Months
Q3 '25 Investment Volumes -18% Below Q2
Prime Yields Remain Stable
Overseas Investors Largest Buyer Group Over The Last 12 Months
TAKE-UP IN QUARTER (SQ FT)
206,729
+37% CHANGE ON LAST QUARTER
VACANY RATE IN QUARTER
12.9%
+2 BPS CHANGE ON LAST QUARTER
PRIME RENT IN QUARTER (£)
£46.50
2.2% CHANGE ON LAST QUARTER
Office take-up reached 207,000 sq ft in Q3 2025, up 37% on the previous quarter to mark the year’s strongest quarter. Although not included in our figures due to its peripheral location, the largest deal of the quarter saw the Birmingham Centre for Anatomy, Surgical and Clinical Skills (B-CASCS) let 51,000 sq ft at Bruntwood SciTech’s BHIC, which completed in 2024. Associated with the University of Birmingham, BHIC will be the B-CASCS’s first site.
Vacancy increased marginally from 12.7% to 12.9% due to the release of secondary space and the completion of a refurbishment at 35 Newhall Street (50,000 sq ft). However, Grade A vacancy remains constrained at 1.9%.
Prime rents continued to increase, rising 2.2% to £46.50 psf. This followed persistent interest at recently completed developments, such as 3 Chamberlain Square, alongside Birmingham’s limited Grade A availability. Rent frees periods stand at 18 months on 10-year lease, down from 24 months 12 months ago.
QUARTERLY TAKE-UP (SQ FT)
Source: Avison Young
TOP 5 DEALS
Source: Avison Young
CITY CENTRE AVAILABILITY (SQ FT)
Source: Avison Young
TAKE-UP IN QUARTER (SQ FT)
248,697
-5% CHANGE ON LAST QUARTER
VACANY RATE IN QUARTER
10.1%
-19 BPS CHANGE ON LAST QUARTER
PRIME RENT IN QUARTER (£)
£50.00
+2.2% CHANGE ON LAST QUARTER
Bristol’s office take-up fell slightly in Q3 2025 to 249,000 sq ft but remained 15% greater than the 10-year average, with 2025 on track to be the strongest year since the pre-pandemic period.
Activity was driven by the largest city centre deal since 2019, where financial services firm Hargreaves Lansdown leased 90,400 sq ft over floors 2,3 and 4 at the Welcome Building to relocate from Harbourside. Completed in 2024, Tristan Capital Partner’s Welcome Building is the most recent “out the ground” new build offering best-in-class, amenity-rich office space in the city centre. This take-up pushed vacancy rates down from 12% to 10.1%, with Grade A vacancy dropping 9pbs to 2.8%.
Bristol still holds the highest headline rent of the Big Nine markets, rising 2% to £50psf to reflect rental pressure at recently completed developments and tight Grade A supply. Rent free periods remained at 18 months for a 10-year lease.
QUARTERLY TAKE-UP (SQ FT)
Source: Avison Young
TOP 5 DEALS
Source: Avison Young
CITY CENTRE AVAILABILITY (SQ FT)
Source: Avison Young
TAKE-UP IN QUARTER (SQ FT)
53,389
+34% CHANGE ON LAST QUARTER
VACANY RATE IN QUARTER
9.6%
+2 BPS CHANGE ON LAST QUARTER
PRIME RENT IN QUARTER (£)
£30.00
+7.1% CHANGE ON LAST QUARTER
Cardiff’s office take-up increased 34% in Q3 to 53,400 sq ft, though remained 27% below the 10-year average. This is primarily due to poor take-up remaining at secondary locations, with take-up for higher quality offices staying positive.
Indeed, approximately 17,000 sq ft of take-up was recorded at One Central Square, where legal firms Browne Jacobson and Lewis Silkin let space in respective deals to relocate from nearby. This led the Professional Services sector to dominate take-up, comprising 44%.
Vacancy continued to increase to 9.6%, reaching historic highs as the release of secondary space continued to outweigh take-up. Despite increasing marginally to 0.4%, Grade A vacancy remains among the lowest in the Big Nine. Prime rents increased 7.1% to £30 psf, driven by rental pressure at Cardiff’s highest quality space and the market’s constrained Grade A vacancy. Rent free periods remained at 18 months for a 10-year lease.
QUARTERLY TAKE-UP (SQ FT)
Source: Avison Young
TOP 5 DEALS
Source: Avison Young
CITY CENTRE AVAILABILITY (SQ FT)
Source: Avison Young
TAKE-UP IN QUARTER (SQ FT)
88,940
-30% CHANGE ON LAST QUARTER
VACANY RATE IN QUARTER
5.5%
-3 BPS CHANGE ON LAST QUARTER
PRIME RENT IN QUARTER (£)
£46.00
0% CHANGE ON LAST QUARTER
Office take-up in Edinburgh fell 30% over Q3 2025 to 89,000 sq ft, 53% below the 10-year average. This continues a period in which take-up has struggled, due partly to a lack of large-scale, modern floorplates and ongoing uncertainty surrounding the financial sector, which typically dominates take-up.
This was reflected over Q3 2025 as minimal finance sector take-up was seen, with professional services instead leading demand. However, the largest deal was from the TMT and creative sector as Avaloq Innovation relocated from One Lochrin Square to Quartermile One.
Vacancy decreased marginally to 5.5%, as take-up outweighed the release of secondary supply. While Grade A vacancy rose slightly (now 0.8%), prime supply in Edinburgh remains among the lowest in the Big Nine. Prime rents remained flat over the quarter at £46 psf, staying above those in nearby Glasgow. Rent free periods remained at 10 months for a 10-year lease.
QUARTERLY TAKE-UP (SQ FT)
Source: Avison Young
TOP 5 DEALS
Source: Avison Young
CITY CENTRE AVAILABILITY (SQ FT)
Source: Avison Young
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