The Cost of UK Office Space in 2026

Hybrid working is no longer the disruptor it once was. Many businesses have settled into smaller but higher-performing footprints, investing in buildings that support collaboration, sustainability and experience. Refurbishment activity dominates supply, as 58% of London’s office stock remains below EPC B and requires significant improvement.

As a result, competition for modern, high-performing workspace has intensified across the capital. Much of the newest supply is either pre-let or under offer well ahead of completion, and refurbished buildings in established districts are attracting strong interest from occupiers seeking a balance between quality, flexibility and long-term operational efficiency. The availability of high-quality space is expected to remain tight throughout 2026, particularly in West End, Midtown and core City locations.

A number of high-profile commitments reinforced Manchester’s reputation as the regional market leader in 2025. Hybrid working has led businesses to consolidate into better-quality, amenity-rich buildings, often taking slightly less space but investing more in workplace performance.

The city’s development pipeline remains relatively modest compared to the depth of demand, and several major schemes have already secured substantial pre-lets. As availability tightens, refurbished buildings that offer strong ESG performance and flexible layouts are gaining increased attention from occupiers who might previously have prioritised new-build space.

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 saw a resurgence in 2025, with Grade A demand driving one of the strongest years of take-up since the pandemic. Activity in Q3 alone reached the highest level of the year, underpinned by professional services, public‑sector organisations and fast‑growing firms seeking centrally located, sustainable workspace.

Prime rents rose to £46 per sq ft in 2025 and are expected to reach £47–£48 per sq ft in 2026. With only a modest development pipeline and growing regulatory pressures on energy performance, competition for the best buildings is increasing.

Occupier behaviour in Birmingham is being shaped by a clear preference for hybrid‑ready, energy‑efficient buildings with strong amenity provision. Several landmark developments are now close to full occupation, and refurbishment programmes across the city are accelerating as landlords reposition ageing stock to meet ESG and tenant-experience expectations.

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 is shaped by its thriving creative and tech sectors. Hybrid‑friendly, amenity‑led buildings are heavily oversubscribed, and very little new development has come forward in recent years. As a result, rents are aligning with other South East hotspots, with prime office space typically achieving around £45 per sq ft.

Demand is further fuelled by businesses seeking a coastal satellite presence, often combining a smaller footprint with high-quality space that supports flexible working patterns. Refurbishments are increasingly important in the absence of new supply, and well‑located buildings with strong sustainability credentials tend to lease quickly.

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. Demand has been broad-based, with the professional services, government services, and consumer sectors accounting for over 60% of total activity.

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

Occupiers are competing for a narrow pool of high‑performing buildings, and requirements often outstrip available options – particularly for companies needing lab proximity or science‑cluster connectivity. Refurbished space that can meet technical performance standards is becoming more valuable, though opportunities remain limited.

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.

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 2026. 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 lowest prime rent among the UK’s major cities at £29.50 per sq ft, but this does not reflect weak demand. Grade A vacancy is just 0.3%, and public-sector activity continues to absorb much of the best space.

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 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

In 2025, Newcastle achieved its strongest first half for office take-up since the pre-pandemic period with 481,000 sq ft leased, 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. 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 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

The UK office market enters 2026 defined by competition for quality, widening rental divides and the growing influence of ESG regulation. Grade A space is increasingly scarce, and rents will continue to rise where supply remains constrained. At the same time, many Grade B buildings risk obsolescence without significant investment to meet incoming energy standards.

For organisations with upcoming lease events, early planning is essential. Workplace analysis, space planning and clearly defined role-of-office strategies will help businesses secure high-performing space that supports productivity, culture and long-term value.

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.