Despite ongoing geopolitical and economic uncertainty, Big Nine office take-up remained robust in Q2, rising to 1.9m sq ft, 36% greater than the previous quarter and in-line with the 10-year quarterly average. As a result, take up for the first half of 2026 totalled approximately 3.4m sq ft, with especially positive activity seen in Bristol, Cardiff and Glasgow.
Take-up in Q2 was supported by a greater volume of larger deals which have been largely absent across the UK’s regional office market in recent quarters. These transactions were largely driven by Government and Services occupiers, the largest sector by take-up, acquiring entire standalone office buildings for public sector use. With regional growth now firmly at the heart of Government policy through a renewed devolution agenda, we expect public sector demand to play an increasingly important role in supporting office take-up, driving employment growth and reinforcing investor confidence across the UK's regional cities.
Despite increasing in recent quarters, Grade A vacancy declined sharply in Q2 2026 to sit at 1.6% with Grade A vacancy sitting especially low in Liverpool, Newcastle, Glasgow and Edinburgh. All new space delivered in Q2 2026 consisted of refurbishments, highlighting the changing nature of development across the UK’s office market as construction costs remained high; notable completions include the 140,000 sq ft Hodge House in Cardiff and 100,000 sq ft Embarq in Bristol.
Office prime rents increased in two Big Nine markets during Q2, with Bristol and Birmingham remaining the highest rents markets at £52 psf. With Grade A vacancy continuing to tighten across the UK’s regional office markets, prime rents are expected to increase further as occupiers to seek best-in-class space with strong ESG credentials, optimal transport connectivity and efficient operational costs.