The UK 5: Office Market H1 2024 Review

Devono’s Insights Team is pleased to share with you our latest edition of The UK 5, exploring office market activity in Birmingham, Bristol, Glasgow, Leeds and Manchester.

The beginning of 2024 has seen considerable ups and downs that have significantly affected business optimism, with Q1 being marked by the threat of recession and Q2 by greater clarity. What is clear is that there is a great deal of variation between the UK’s regional cities in terms of how firms have responded to this backdrop, with leasing in some cities proving more resilient in the face of uncertainty than in others.

As leasing trends have diverged, the quantity of space availability has also fluctuated to differing degrees between the UK 5 cities, although the majority have seen a reduction in the availability of best-in-class spaces. At the same time, landlords in several cities have seen fit to increase rents over 2024, shaking up the pricing hierarchy and creating further contrast between the regions.

Below are some key points from the report:

Birmingham

  • Return of deals in excess of 50,000 sq ft boosts leasing volumes
  • Grade A share of available space is 14% – smallest of the UK 5
  • Prime and Grade B desk rates revised downwards by 15% and 13% respectively from Q1-Q2

Bristol

  • Number of firms leasing increased 84% between Q1 and Q2
  • Total space available reaches new high of 1.5M sq ft
  • Prime rents reach £48.00 per sq ft in Q2 – highest of the UK 5

Glasgow

  • 264,711 sq ft leased over H1 2024 – up 54% on the H1 2023 level
  • Availability up 21% over 6 months to 3.4M sq ft
  • Desk rates for prime spaces up 38% in Q2 to £450.00 per desk, per month

Leeds

  • Space leased fell to 128,805 sq ft in Q2 – lowest level recorded since Q2 2021
  • Grade A share of available space is 31% – largest of the UK 5
  • Prime rents at £38.00 per sq ft – averaging 12% lower than the other UK 5 cities

Manchester

  • Registered the most significant Q2 increase in space leased of the UK 5 – up 71% on Q1
  • Positive growth in Grade A availability over both quarters in 2024 – now at 684,524 sq ft
  • Manchester no longer the costliest city despite rents increasing to £45.00 per sq ft in Q2

While we are set to move into a period of greater economic stability, differing local government initiatives and development priorities will continue to create divergence in rental growth and availability between the UK 5 cities. For the remainder of 2024, the question becomes whether we will continue to see the same level of responsiveness from firms in the regions when it comes to their office footprint.

 

If you would like any further information on this report, please do not hesitate to get in touch, or alternatively you can find out more at our website www.devono.com.

Enter Your Details To Download

The UK 5: Office Market H1 2024 Review

First Name*
Last Name*
Company Name*
Phone Number*
Email Address*
Subscribe to quarterly market insights and latest information on the office markets.