Investment activity showed encouraging signs in Q2 2026, with momentum continuing to build and transaction volumes remaining healthy. A total of 30 deals completed during the quarter, exceeding the five-year quarterly average of 26 transactions. Against a particularly strong Q1, investment volumes totalled £282m in Q2, down 38% quarter-on-quarter and 31% below the five-year quarterly average. H1 2026 volumes reached £738m, 27% ahead of H1 2025, although 14% below the five-year half-year average.
Owner occupiers are emerging as an increasingly important buyer group in the regional office market. Over the past 12-months they have acquired £281m of assets, accounting for 23% of overall volumes, compared with 5% in the preceding 12-month period. Notable purchases include Bank of New York Mellon, Lloyd’s and Natwest. This trend has been driven by a combination of attractive pricing opportunities, accelerating rental growth and a growing preference among businesses to take greater control over their long-term occupational portfolios.
The largest deal of the quarter was Northtree’s acquisition of The Lincoln Building, Manchester for £55m, reflecting a NIY of 6.8%. The asset is fully let with a WAULT of 8.6 years to expiry and is rated BREEAM ‘Excellent’. This deal reflects continued resilience of investor demand for high-quality assets in core locations and also provides evidence of yield hardening in Manchester.
While sentiment remains cautious amid ongoing geopolitical and economic uncertainty, the key message is that capital remains active, albeit increasingly selective. Reflecting this, the Big Nine prime yield softened by 8 basis points to 7.22%, driven by 25 basis point outward movements in Cardiff, Glasgow and Newcastle.