Against a backdrop of heightened geopolitical and economic uncertainty, take-up fell to 1.4m sq ft, 33% below the previous quarter and 31% below the 10-year average. Take-up for floorplates under 10,000 sq ft stayed within historic averages, highlighting the continued demand for office space from SMEs. However, it was a fall in take-up for larger sizebands that resulted in the subdued market conditions.
The largest sector by take-up in Q1 was the Professional services sector, comprising 26% of total take-up. Despite this, the largest deal of the quarter was from the Government and services sector with the Government Property Agency (GPA) letting the entirety of Havelock, a 115,000 sq ft office building in Manchester ahead of the establishment of an 800,000 sq ft Manchester Digital Campus planned for 2032.
For those occupiers in search of best-in-class space, Grade A vacancy remains constrained at 2.7%, despite a quarterly increase of 50 bps. The most significant completion of the quarter was in Leeds, where the 75,000 sq ft at Kelstone completed at Aire Park, 63% of which was let prior to completion to Eversheds Sutherland. Constrained levels of supply will continue to be a key feature of the market going forward with just 714,000 sq ft of space completing across the Big Nine this year, significantly below the historic average of 1.8m sq ft.
Prime rents increased in Birmingham and Bristol over Q1 2026, rising by 12% and 4% respectively to both stand at £52 per sq ft, the joint highest in the Big Nine. Prime rents across the Big Nine continue to be achieved at locations with strongest ESG credentials, optimal transport connectivity and efficient operational costs.