We are pleased to share with you our latest publication, The UK5. This report brings to you a review of the 5 largest regional city office markets around the UK: Birmingham, Bristol, Glasgow, Leeds, and Manchester. Our analysis covers the first half of the year and how that is influencing the market dynamics for the latter part of 2023 and start of 2024.
The rise in hybrid working arrangements is reshaping the demands of today’s workplaces. As requirements evolve with greater emphasis on flexibility and rationalisation of space, leasing trends will shift focus more on location, quality, cost and type of space. One such trend is a greater tenant appreciation for flexible office solutions. An uptick in existing and new flexible office providers setting up new centres in regional hubs is seeing an influx of options offering tenant’s newfound flexibility and choice.
The office market landscape varies from city-to-city, our report explores each of those differences.
Birmingham
- Leasing activity up, boosted by the education sector
- Available Grade A space is squeezed further
- Prime rents remain at a five-year high
- Development pipeline to stimulate tenant demand
Bristol
- Leasing levels take a dive in H1 ‘23
- Average size of leasing deal halves to 3,229 sq ft
- The Eastern Fringe submarket attracts the most leasing activity
- Prime rents stand at £42.50 per sq ft, the highest of the cities
Glasgow
- Uplift in leasing across Q2 ’23 buoys H1 leasing levels
- Take-up continues to be almost entirely confined to the City Core
- Tech sector leads tenant demand in H1
- Prime rents remain at £36.00 per sq ft
Leeds
- Leasing renaissance in Leeds leads to a 61% uplift in H1 ‘23
- Financial sector drives tenant leasing
- Share of Grade A availability has increased in 2023 to a new high
- Prime rents have increased to £37.00 per sq ft
Manchester
- Dip in leasing activity has seen fewer transactions in H1 ‘23
- Tech firms have been the most active sector leasing
- A decline in Grade A supply to be propped up by more development
- Prime rents now up to £40.00 per sq ft
As we approach 2024, there is a strong sense of anticipation that business confidence will markedly improve compared to the sluggish start of the year. This is expected to translate into an upturn in demand for office space as more and more firms continue to evolve their workplace strategies. This is whilst combatting economic uncertainty, inflationary pressures, and high operational costs which persist as immediate concerns.
It is therefore imperative that business with space plans for the regional 5 cities understand any market shifts.
To download the full report here.
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.
