The Cost of UK Office Space in 2026

At the same time, availability is becoming increasingly polarised. More secondary space is available, but the supply of the offices businesses are actively targeting remains much tighter. This continues to support rental growth at the top end of the market, particularly for buildings that combine strong sustainability performance, amenities and connectivity.

Looking ahead, London remains a market where headline availability does not necessarily reflect the choice available to businesses looking for the highest-quality space. The growing presence of AI and technology occupiers adds another source of demand to an already competitive prime market.

Manchester’s office market has remained resilient during 2026. Across the wider market, take-up reached 516,152 sq ft in Q2, up 16% on the previous quarter and broadly in line with the 10-year quarterly average. City-centre activity was quieter, however, reflecting a quarter characterised by smaller transactions.

The flight to quality remains one of the clearest features of the Manchester market. More secondary space has returned to the market, while Grade A availability remains considerably tighter. This distinction has continued to support rental growth, with prime headline rents reaching a new high of £48.00 per sq ft.

Manchester houses 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 tells a slightly different story in 2026. Leasing activity slowed during the second quarter, with take-up across the wider market reaching 114,771 sq ft, down 20% on the previous quarter. City-centre take-up was 44,553 sq ft, 58% below Q1 and 74% below the five-year quarterly average.

Despite the quieter leasing market, prime rents have held at a record £52.00 per sq ft, unchanged from the previous quarter and around 14% higher year-on-year. It highlights the distinction between overall market activity and demand for the best-quality buildings.

Development remains relatively restrained, which should continue to influence the availability of high-quality space. Around 263,000 sq ft is due to be delivered in Birmingham city centre during 2026, below the 10-year annual delivery average of 330,000 sq ft.

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

Brighton’s office market has carried good momentum into 2026, following take-up of 135,000 sq ft in 2025, 12% above the annual average. Demand has continued into this year, with businesses showing a clear preference for modern, well-located offices.

The challenge is that there isn’t a huge amount of this space available. Grade A offices account for just 18% of current supply, while new development remains limited. Sovereign House is currently the only scheme under construction and around half of the building is already committed.

That limited choice is being reflected in rents. Brighton’s prime headline rent has now reached £47.50 per sq ft, up 8% over the past 12 months. With little else currently coming through the development pipeline, the market is likely to remain relatively tight for businesses looking for the best-quality space.

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

Demand is increasingly focused on the city centre, particularly among businesses looking to upgrade their workplace. This is being reflected in rents, with Bristol’s prime headline rent reaching a new high of £52.00 per sq ft since the last quarter. There are already signs this could move higher, with some of the city’s upcoming refurbished offices quoting rents around £60.00 per sq ft.

Refurbishment is becoming an important part of Bristol’s office market. With no new-build schemes currently on site or expected to start during 2026, projects such as Embarq, One Friary and Portwall Place are helping bring more high-quality space to the market. Recently completed new and refurbished offices have also leased well, suggesting there is still an appetite for better-quality workspace when it becomes available.

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

The market continued its strong start through the first half of 2026, with office and laboratory take-up reaching 460,000 sq ft in H1, 25% above the five-year H1 average. Much of this activity came from science and technology businesses, reflecting the sectors that continue to shape Cambridge’s office market.

There is also a significant amount of space coming through. The development pipeline remains heavily weighted towards laboratory space, with a number of schemes expected to add new supply over the coming years. Despite this pipeline, availability of the best-quality space remains relatively constrained in key locations.

Prime office rents currently reach £75.00 per sq ft, reflecting continued demand for high-quality space. It makes Cambridge an interesting market to watch as new supply arrives alongside continued demand from its science and technology sectors.

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

• City Centre
• Cambourne
• Cambridge Science Park

A long-term shortage of Grade A space remains one of Leeds’ defining market pressures. Newly delivered schemes are leasing quickly – often ahead of completion – and many refurbishments are now achieving performance levels comparable to new build, signalling a shift in how landlords respond to ESG expectations and hybrid-ready requirements. Occupiers with upcoming lease events are increasingly moving early, recognising that the best space in the city centre is limited and that competition is rising, particularly for flexible floorplates with strong amenity provision.

Leeds’ development pipeline is improving but not at the pace needed to meet demand, which means upward pressure on rents is likely to persist into 2027. At the same time, the city’s broader regeneration activity – including improvements to public realm, transport integration and mixed-use districts—is creating a more cohesive and attractive commercial environment. This is strengthening Leeds’ position as the key northern alternative to Manchester for organisations looking to expand their UK footprint.

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

Liverpool has the largest collection of Grade II listed buildings outside London, so finding office space with character isn’t a problem. The former European Capital of Culture hosts businesses across a wide range of sectors, from education and manufacturing to accountancy and legal services.

Liverpool’s office market has been quieter in 2026. After 78,000 sq ft of take-up in Q1, activity fell to 25,868 sq ft in Q2, down 60% on the previous quarter. Overall vacancy stood at 5.0%, although the choice of high-quality city-centre space remains more limited.

Despite the slowdown in leasing activity, prime headline rents have held at £29.50 per sq ft, unchanged from Q1. This suggests that while businesses may be taking less space overall, there is still demand for the best-quality offices when they become available.

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’s office market picked up significantly in Q2 2026, with take-up reaching 210,907 sq ft, up 114% on the previous quarter and above the longer-term quarterly average. Activity was boosted by a major deal at Cobalt Office Park, while the city centre also saw businesses taking high-quality space.

Availability remains relatively tight at the top end of the market. Overall city-centre vacancy fell slightly to 9.6%, while Grade A vacancy stood at just 0.9%. New space is coming through, including 2 Pilgrim Square, but this is not due to complete until 2027.

Prime headline rents remained at £32.00 per sq ft in Q2, unchanged from the previous quarter. With very little Grade A space currently available, businesses looking for the best-quality offices continue to have relatively limited choice.

Looking ahead, Newcastle’s limited Grade A availability is likely to keep competition focused on the best-quality offices. New developments such as 2 Pilgrim Square will add more choice when they complete, but with this space not due until 2027, options are likely to remain relatively limited in the near term.

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

• Quayside
• Grey Street
• Newcastle Helix
• Cobalt

The market saw a stronger first half of 2026, with office and laboratory take-up reaching 463,000 sq ft, 8% above the five-year H1 average. Activity continues to be supported by Oxford’s science and technology sectors, with demand concentrated across the city’s key innovation locations.

Oxford also has a significant amount of new space coming through, giving businesses more choice across the wider market. However, availability remains much tighter in the city centre, so the picture varies depending on the quality and location of the space being considered.

Prime office rents currently stand at around £70-£72.50 per sq ft, with new developments expected to set higher rental benchmarks as they come forward. For Oxford, the longer-term story remains closely tied to its innovation economy and how successfully new and existing workspace responds to the needs of its science and technology businesses.

The market has continued to show momentum in 2026. Take-up during H1 was 23% above the five-year H1 average, supported by businesses moving into Reading from elsewhere in the region. This included 3M moving from Bracknell, Zetes from Maidenhead and Kittle Group from Chelmsford. Demand remains particularly focused on high-quality offices, and this is being reflected in rents. Prime headline rents have reached £48.00 per sq ft, with newer and refurbished buildings continuing to attract the strongest interest.

Demand remains particularly focused on high-quality offices, and this is being reflected in rents. Prime headline rents have reached £56.00 per sq ft, with newer and refurbished buildings continuing to attract the strongest interest. One Station Hill has helped establish this new rental benchmark for the market. LSH reported the £56 psf benchmark as a 45% increase on Reading’s previous high watermark.

Looking ahead, Reading has relatively limited new development coming through, which could keep the best space in shorter supply. At the same time, refurbishment is helping improve the quality of existing buildings, giving businesses more modern options without relying entirely on new development.

As 2026 progresses, the UK office market continues to evolve, but the picture varies from city to city. What is consistent is the preference for high-quality, well-located offices, even in markets where overall leasing activity has slowed.

The flight to quality remains a clear theme. Businesses are looking closely at sustainability, amenities, building performance and the overall workplace experience, while older secondary space is facing greater pressure to keep up.

This is creating a growing divide between prime and secondary offices. In many markets, there is office space available, but much less choice when it comes to the buildings businesses actually want. With new development limited in several cities, the best-quality space is continuing to hold its value and, in some cases, push rents higher.

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