The latest data on the Big 6 regional office markets (Birmingham, Bristol, Edinburgh, Glasgow, Leeds and Manchester) reveals a robust performance, with combined take-up reaching 1.73 million sq ft.
This figure, while marginally down by 4% on H1 2024, is 4% higher than the five-year average, demonstrating the market's resilience, according to Savills.
Glasgow and Edinburgh in particular have shown remarkable performance in H1 2025 with Glasgow's take-up 32% higher than H1 2024 and 25% above its H1 five-year average. The city also recorded the highest number of deals on record for H1, with 73 transactions, and the highest H1 take-up since 2019. Edinburgh's take-up is 21% higher than H1 2024 and 14% above its H1 five-year average, underscoring the strong demand in Scotland's key cities.
The professional services sector was the most active across both cities, accounting for almost a third of take-up.
Manchester also performed well, with take-up 14% higher than H1 2024 and 32% and 10% above the five- and ten-year averages, respectively, reflecting the city's continued attractiveness to businesses seeking high-quality office space. Manchester also recorded the largest deal this year with Autotrader taking 130,000 sq ft at 3 Circle Square. TMT accounted for 41% of the total take-up in Manchester.
TMT was also the most active sector in H1 accounting for 20% of total take-up.
The Big 6 regional markets have delivered an average of 5% per annum prime headline rental growth over the past three years. This trend was evident in Q2 where a new record headline rent of £49.00 per sq ft was achieved in Bristol with further expected rental growth this year.
James Evans, head of national office agency, Savills, says: “The regional office market's performance, particularly against the five-year average, highlights its resilience and adaptability. Cities like Glasgow, Edinburgh, and Manchester are leading the way with significant increases in take-up and deal numbers. This data underscores the ongoing demand for high-quality office space across the UK regions. However, it should be noted there is continued delays around transactions and nervousness at the smaller end of the market which represent some risk to the regional markets in the short term."
While H1 2025 investment volumes were 4% below the same period in 2024, over £600 million was placed under offer in Q2, indicating a shift in sentiment. underpinned by robust fundamentals and improving occupational performance. Oxford Economics anticipates two base rate cuts in the second half of the year, which is expected to further stimulate investment activity and translate into increased turnover by year-end.
James Emans, joint head of UK Investment, says: "Investment sentiment in the regional office market is showing clear signs of recovery. The substantial volume of capital placed under offer in Q2 and the anticipated base rate cuts are set to further boost investment activity. This renewed optimism is a testament to the strong fundamentals and improving occupational performance across the regional markets."
