Big Nine office investment on track for strongest year since 2022

Investment volumes reached £344m in Q3 2026 across the UK’s Big Nine regional office markets, representing a 22% increase on the previous quarter and putting the market on course for its strongest year since 2022, according to new analysis from global commercial real estate advisor Avison Young.

This strong quarterly performance brings investment volumes to £1.1bn year-to-date, 25% ahead of the same period in 2025. Prime yields remain stable, holding at 7.22% compared with the long-term average of 5.81%, presenting an attractive entry point for investors, particularly for assets offering secure income and strong rental growth prospects.

The quarter’s two most significant deals comprised Forma & Patron Capital acquiring 2 Snowhill for £88m and Martley Capital securing Priory Court & The Lewis Building for £60m.

Despite encouraging economic indicators, including stronger than expected GDP growth and rising business activity, this momentum has yet to translate into stronger occupier demand across the Big Nine. Take-up reached 1.7m sq ft in Q3 2026, down 13% on Q2 and 17% below the 10-year quarterly average.

Certain cities bucked the national trend, however, with Birmingham’s quarterly take-up reaching 288,156 sq ft, 151% above its Q2 performance. The city’s annual take-up is now 99% of the level recorded at the same point in 2025, and prime rents have risen 14.3% year-on-year to £52 per sq ft, representing the second highest increase across the Big Nine.

The leasing picture in Bristol was also positive, with take-up reaching 173,246 sq ft in Q3, 19% above the 10-year average and consistent with Q2 performance. Prime rents in Bristol are now the highest across the Big Nine, rising to £55 per sq ft in Q3, reflecting quarterly growth of 5.8% and annual growth of 10%. With only 86,300 sq ft of new space due to complete over the next two years, limited development will maintain upward pressure on prime rents in the city.

Across the Big Nine, the limited availability of space capable of meeting evolving occupier requirements remains a key constraint, particularly buildings offering large, efficient floorplates with excellent digital connectivity. While 2.5m sq ft of space is currently under construction, encouragingly up 9% year-on-year, annual deliveries remain well below historic levels.

However, the longer-term outlook remains encouraging, with employment growth across key regional cities forecast to average 1.7% per annum over the next five years, outperforming the UK average of 1.3%. Growing investment in AI, alongside the government’s devolution agenda, is also expected to support business activity and demand for office space over the long term.

Guy Spencer, Director and Head of National Capital Markets at Avison Young, said:
“There are clear reasons for optimism in the regional office investment market. Activity is gathering pace as investors recognise the value available in the regions, particularly in well-located buildings that can provide reliable income and benefit from rental growth. The market is not recovering at the same rate everywhere, but that is creating opportunities for buyers who can identify assets with the right fundamentals.

“The shortage of modern, high-quality space is becoming increasingly pronounced. Businesses are looking for offices that help them attract talent and meet higher expectations around connectivity and sustainability, but the development pipeline remains limited. That imbalance should support higher rents for the best buildings and give investors greater confidence to continue investing in our regional cities into 2027.”

Read Avison Young’s Big Nine report for Q3 2026 in full here.