The Cost of UK Office Space 2025

Prime headline rents surged to £160 per sq ft in the West End, a 3% year-on-year rise, while rents in the City core climbed to £85 per sq ft, reflecting a nearly 10% annual uplift. In super-prime assets, such as 22 Bishopsgate and 40 Leadenhall Street, landlords are achieving headline concessions exceeding £120 per sq ft, illustrating the widening premium for top-tier buildings.

Other submarkets saw upward rent pressure: Midtown reached circa £82.50 per sq ft, while City Fringe and Farringdon averaged £95 per sq ft, reflecting robust take-up and tight supply in high-demand zones. Vacancy for Grade A space in the West End Core has dropped to as low as 0.3%, and availability across Mayfair, St James’s, Soho, and Marylebone remains approximately 30% below ten‑year norms.

With Grade B and older stock increasingly out of favour, the widened gap between prime and secondary rents reflects a structural shift in occupier behaviour: quality, sustainability, and connectivity now command premium valuations. As competition for best-in-class space intensifies, especially among large corporates and institutional tenants, London’s office rental growth is expected to remain robust through H2 2025 and beyond.

Manchester continues to lead the UK’s regional office market with a compelling balance of affordability and quality. Take-up across the city exceeded 580,000 sq ft in the first half of 2025, keeping the city firmly on pace to surpass its five-year average by year-end. While Q1 delivered a standout 320,000 sq ft, Q2 followed with 261,500 sq ft, marking the largest first-half total since 2019.

Occupier activity remains centred on Grade A and prime space—Q1 alone recorded over 178,000 sq ft in six major deals, evidencing a strong appetite for modern, sustainable workspace. Reflecting this demand-pressure, prime headline rents reached a new high of £45.50 per sq ft in Q2 2025, up from £44 at the start of the year.

Supply remains tightly constrained. Grade A vacancy stood at just 3.3%, and prime stock vacancy sank to 1.8%, underscoring intense competition for best-in-class space. This supply-demand imbalance reinforces Manchester’s attractiveness to occupiers seeking efficient, high-calibre workspace.

Manchester is innovative, competitive and attractive to investors yet reasonably priced. There is a variety of tenants from companies with regional or global headquarters which include adidas, Siemens, Kellogg’s and Baker Tilly LLP.

The most popular areas to rent office space in Manchester are:

• Central Core
• Piccadilly
• Spinningfields
• Ancoats and Northern Quarter
• Salford Quays
• Media City
• Manchester Airport

Birmingham’s office market is demonstrating renewed strength in 2025, anchored by increasing demand for high-quality, centrally located Grade A space. Prime headline rents surged to £45.50 per sq ft in Q2, up from £43.00 in Q1, reaching a record level for the city.

Despite subdued overall take-up, occupier interest remains concentrated in best-in-class buildings. The availability of Grade A space remains critically low—estimated at just 2.3% of total stock—creating unprecedented competition among professional services, public sector, and inward investors.

City centre leasing continues to be led by institutional and service sector demand. Major deals in H1 include Phoenix Life’s pre-let of approximately 25,000 sq ft at 10 Brindleyplace and Gilbanks’ 21,000 sq ft lease at 5 St Philips, both reflecting confidence in sustainable, amenity-rich workspace.

As demand for premium office spaces continues to outstrip supply, Birmingham is solidifying its role as a leading regional business destination, offering competitive opportunities for occupiers and investors alike. Its tenant profile varies from National Express, Deloitte, KPMG, Cadbury, and Facepunch Studios.

The most popular areas to rent office space in Birmingham are:

• Birmingham Central
• Digbeth
• Solihull
• Eastside
• Westside

In 2025, Brighton’s office market continues to reflect both the opportunities and challenges of high demand amidst constrained supply. Grade A space remains in short supply across the city, and new development activity is limited. As a result, prime rents are holding between £38 and £42 per sq ft, with top-end quoting levels for best-in-class space in the city centre.

Looking forward, Brighton’s office market is expected to remain supply-constrained, with rental growth likely to be driven by selective refurbishments and rising occupier expectations around amenity provision and ESG performance.

Brighton’s tenant profile includes American Express, Domestic & General, Octopus Energy, Close Brothers, and Brand Watch.

The most popular areas to rent office space in Brighton are:

• City Centre
• North Laine
• South Laine

Leasing activity slowed slightly in the most recent quarter, with take-up reaching 110,312 sq ft, representing a 46% decline on both the previous quarter and the city’s 10-year average. Despite this dip, the year-to-date total of 339,192 sq ft remains 50% above 2023 levels, reflecting a robust start to the year.

Demand has been broad-based, with the professional services, government services, and consumer sectors accounting for over 60% of total activity. Notable transactions in Q2 include BLOCK’s 21,235 sq ft lease at The Fairfax and Turner & Townsend’s 9,715 sq ft deal at Temple Point, both reinforcing appetite for central, high-spec space.

The city’s overall vacancy rate has edged up to 8.7%, but availability of Grade A space is just 2.5%, further driving rental growth. As occupiers seek future-proofed, ESG-aligned offices, landlords are achieving stronger terms on best-in-class stock, particularly in locations like Temple Quay and Redcliffe.

Looking ahead, around 567,000 sq ft of speculative space is due to complete over the next 12 months, including major schemes such as The Welcome Building, 3 Rivergate, and The Crescent. This pipeline is expected to help meet pent-up demand—but given pre-letting interest and limited backfill, Bristol’s prime rents are likely to remain under upward pressure.

Bristol’s tenant profile varies from the Ministry of Defence, Airbus, Rolls Royce, Aviva, RAC and Hargreaves Lansdown.

The most popular areas to rent office space in Bristol are:

• Temple Meads
• Broadmead
• Clifton
• Aztec West

Demand remains exceptionally strong, particularly from science, tech and R&D occupiers. However, supply constraints persist, with Cambridge reporting a Grade A vacancy rate of just 1.3%, one of the lowest in the UK. Even with the delivery of 124,000 sq ft of new space in late 2024, availability remains tight, underscoring the ongoing demand-supply imbalance.

Recent government support for accelerated development has renewed focus on unlocking growth across the Oxford-Cambridge corridor. Yet constraints around affordability, infrastructure, and sustainability will need to be addressed if the city is to meet its full economic potential.

Take-up in the wider Golden Triangle reached 84,400 sq ft in the most recent quarter, with Cambridge accounting for a significant share. Looking ahead, over 3.7 million sq ft of space is under construction across the region, positioning Cambridge to benefit from a new generation of purpose-built, ESG-compliant innovation buildings.

Prime rents remain at £62.50 per sq ft, among the highest in the UK outside London. This stability reflects not only scarcity but the premium placed on proximity to Cambridge’s research institutions, venture capital ecosystem, and global brand appeal.

The most popular areas to rent office space in Cambridge are:

• City Centre
• Cambourne
• Cambridge Science Park

The market ended 2024 on a strong note, with Q4 take-up reaching 259,265 sq ft—a 77% increase on the previous quarter. While still slightly below the 10-year average, this performance reflected renewed confidence among occupiers and increasing competition for Grade A space, which accounted for 40% of all leasing activity.

Significant transactions during the period included NG Bailey’s 25,230 sq ft lease at Arlington Business Centre and the University of Law’s 15,241 sq ft letting at Yorkshire House, highlighting the city’s appeal across both private and public sectors. Over the past year, financial services, professional services, and government organisations have collectively driven 70% of take-up, reinforcing the diversity and resilience of demand.

Prime headline rents have risen to £39 per sq ft, a quarterly increase of 2.6%, reflecting competition for top-quality space in core city centre locations. The overall availability rate has tightened to 5.4%, with limited new speculative completions placing further pressure on supply.

Looking ahead, Leeds is expected to maintain its growth trajectory through 2025. A measured development pipeline, combined with sustained occupier appetite for flexible, sustainable space, positions the city as a continued magnet for regional investment and relocation.

The tenant mix in Leeds varies from Asda, Capita, Jet2, Sky and GHD.

The most popular areas to rent office space in Leeds are:

• Leeds Central
• Wellington Place
• Burley
• Beeston
• Pudsey
• Hunslet
• Thorpe Park
• Kirkstall Forge

The city’s office market registered a modest recovery in Q2 2025, with take-up rising by 56% over Q1 to approximately 55,000 sq ft. Despite this improvement, activity remains quiet—even so, this quarterly figure is still 57% below the 10‑year average, underscoring a continued subdued market environment.

The vacancy rate edged higher by a modest margin, though conditions remain notably tight across the city—particularly for high-specification, Grade A stock. In line with these supply constraints, prime headline rents held firm at £25.50 per sq ft, displaying resilience in Liverpool’s modest yet defensive rental market.

Take-up continues to be driven by professional services, public sector activity, and TMT firms—reflecting Liverpool’s broader economic mix—even as overall activity remains below long-term norms. Meanwhile, the development pipeline remains limited, with few new or refurbished schemes expected to deliver in 2025 or 2026, placing further emphasis on refurbishments of existing buildings.

Its tenant mix varies from Jacobs Crackers, Unilever, Typhoo and The Very Group.

The most popular areas to rent office space in Liverpool are:

• City Centre
• St Paul’s
• The Docks
• Knowledge Quarter
• Wavertree Technology Park

Newcastle achieved its strongest first half for office take-up since the pre-pandemic period, with 481,000 sq ft leased by mid-2025, outperforming its 10-year H1 average by 37 %. However, Q2 itself saw a significant pullback, with take-up falling 58% below the previous quarter and landing 26% under the 10-year quarterly average.

Grade A vacancy increased during the quarter as new space entered the market, with city centre availability climbing to near-record levels. Nevertheless, Grade A remain scarce overall, sustaining rising competition for prime space.

Prime headline rents in Newcastle held firm at £32 per sq ft, representing a year-on-year rise of 14.3 % and stable quarter-on-quarter, accompanied by generous rent-free terms averaging 20 months on a 10-year lease.

Looking ahead, the future pipeline suggests potential for significant market uplift. HMRC’s large-scale pre-let is due to complete later in 2025, while the Pilgrim Place development, delivering 250,000 sq ft by 2027, stands to rebalance the tight supply-demand dynamic and catalyse renewed leasing activity.

The most popular areas to rent office space in Newcastle are:

• Quayside
• Grey Street
• Newcastle Helix
• Cobalt

As part of the Golden Triangle, Oxford shares many of the dynamics seen in nearby Cambridge—strong demand, constrained supply, and record-setting prime rents. Grade A vacancy remains extremely low, particularly in central locations and major research parks, with many schemes pre-letting well in advance of completion.

Prime headline rents in Oxford now stand at £62.50 per sq ft, among the highest of any UK city outside London. Rents in the city fringe and established science clusters typically range from £45 to £55 per sq ft, depending on specification and proximity to key institutions.

Despite government support for growth across the Oxford-Cambridge corridor, future development remains limited by planning and infrastructure challenges. As a result, competition for space is intensifying, especially from life sciences occupiers and investors seeking long-term exposure to Oxford’s R&D economy.

With new space in high demand and limited availability in the short term, Oxford is likely to see continued rental resilience, particularly for ESG-compliant buildings that meet the operational needs of science and tech occupiers.

The most popular areas to rent office space in Oxford are:

• Oxford Science Park
• Oxford Business Park
• Bicester
• Abingdon

Occupier activity remains healthy, supported by an ongoing flight to quality across the South East. Demand in Reading is focused on best-in-class buildings with strong sustainability credentials and amenity-rich environments suited to hybrid working models. However, Grade A availability is notably constrained, with vacancy levels remaining tight and speculative development relatively limited.

As a result, prime headline rents are holding firm at £56.00 per sq ft, among the highest in the South East outside of Oxford and Cambridge. New builds and major refurbishments are achieving strong terms, supported by growing competition for future-ready space. Rents in refurbished stock continue to push upward, driven by tenant appetite for flexibility and energy efficiency.

Looking ahead, Reading is well positioned to capture growing occupier demand, particularly from London-based firms looking to decentralise while retaining proximity to the capital. With a highly educated workforce, strong infrastructure, and competitive rent levels, the town is set to remain a core performer in the South East office market.

The most desirable areas to rent office space in Reading are:

• Town Centre
• Green Park
• Thames Valley Park
• Caversham

As 2025 progresses, the UK office market is defined by ongoing transformation—led by occupier demand for high-specification, sustainable space. Organisations are re-evaluating their real estate strategies to reflect evolving workforce expectations, hybrid working patterns, and rising ESG obligations.

The dominant theme across all regions remains a clear flight to quality, with businesses gravitating towards future-proofed buildings that support flexibility, wellbeing, and long-term value.

In both core and regional markets, prime office space continues to outperform, driven by a combination of limited supply, investor confidence, and the strategic priorities of tenants seeking to future-proof their footprint. While economic pressures persist, the resilience of Grade A demand suggests the UK market will continue to reward quality and adaptability in the years ahead.

Our workplace experts have an unparalleled understanding of the UK’s tenant and landlord markets.

Contact us below for help concerning your next steps, or to find out more about our office relocation and fit out services.