Take-up across the Big Nine office markets in the UK has hit 1.7 million square feet in the third quarter, as demand for top-quality Grade A stock in key cities continues to climb.
Demand for the most amenity-rich space in central locations surpassed the previous quarter’s take-up figures, with 66% of activity focused on city centres in Q3, global commercial real estate adviser Avison Young found in its The Big Nine quarterly office report.
Occupiers remained lasered in on securing the best-in-class spaces, nudging prime rents ever higher in supply constrained markets such as Birmingham, Bristol, Cardiff and Leeds. This rental growth was fuelled by appetite for sustainability- and wellness-conscious buildings with top credentials, with prime average rents standing at £40.72 per square foot in the Big Nine markets. This reflects a quarterly increase of 2.1% and an annual increase of 5.5%.
While take-up fared better quarter-on-quarter, levels still fell short of the 10-year average for the second quarter in a row as the market attempts to adjust to a supply squeeze, changing occupier wants and ongoing wider geopolitical and macroeconomic issues.
The lack of Grade A stock has impacted overall vacancy levels, which have dropped to 10% and show little signs of opening up in the coming weeks and months. A total of 694,000 square feet is set to complete in 2026, a significant dip on the historic average of 2.2 million square feet delivered annually between 2020-2024.
Some regions fared better than others, as mega leasing deals bolstered figures. In Liverpool, office take-up hit 146,000 square feet in the quarter, up 166% on the previous quarter and 17% above the 10-year average in what was the city’s strongest quarter since 2022, data showed. This was in part due to the Secretary of State for the Home Department's deal to lease a further 52,000 square feet of vacant space in The Capital Building on Old Hall Street.
Meanwhile, in Leeds, take-up rose 67% to be level with the 10-year average as demand picked up. This was driven by professional services firms which reflected 56% of take-up following law firm Eversheds Sutherland’s 47,000-square-foot letting at Keelstone, Aire Park. The city also saw the biggest quarterly prime rental increase, rising 8.2% to £46 per square foot.
In Birmingham take-up hit 207,000 square feet, up 37% on the second quarter, making it the year’s strongest quarter. This was spurred by the Birmingham Centre for Anatomy, Surgical and Clinical Skills to take 51,000 square feet at Bruntwood SciTech’s Birmingham Health Innovation Campus, which was the biggest deal of the quarter.
Other markets saw a slight drop in demand, such as in Bristol where take-up came in at 249,000 square fee across the quarter. Despite the dip in demand, Bristol is set to have its best year since before the pandemic, with Hargreaves Lansdown's deal to let 90,400 square feet at the Welcome Building in the city centre’s largest deal since 2019. It also continues to be the Big Nine market with the highest rents, with prime rents up 2% at £50 per square foot due to a lack of the best stock.
Chris Cheap, principal and managing director, transactions at Avison Young, said: “Whisper it quietly but offices are starting to interest investors again as the demand and rental growth signals remain positive. Well-located and well-designed workspace is appealing to occupiers, especially if it helps them retain and attract talent whilst meeting their net-zero carbon commitments, and the clear message is that they are prepared to pay higher rents for it. This isn’t lost on those who write the cheques at investment houses.
“With just under 700,000 square feet of Grade A space due for completion next year across the Big Nine though, the bump in the road is an impending undersupply of prime stock in our most important markets. The current viability puzzle remains a difficult one to solve and we may need to see how the public and private sectors can come together to see what levers can be pulled to bring forward much-needed prime workspace.’
Stephen Cowperthwaite, principal and managing director, UK regions and Liverpool, at Avison Young, said: “There are some very clear positive signs across the regions of the UK, with increased occupier activity, rental growth and renewed confidence beginning to flow back into the market. While challenges remain, the strength of demand for sustainable, high-quality office space demonstrates that businesses continue to see the long-term value in investing in the regions.
“Liverpool’s largest deal in three years at the Capital Building is welcome news, with the Government committing to significant additional space. The underlying issue of a lack of quality stock, resulting in prime vacancy at record lows, means that 2026’s focus must be on delivery of new Grade A space to support the ambitious Growth Plan for the region and capitalising on the city’s strengths to attract new occupiers.”
Julian Watts, managing director, Bristol and South West, at Avison Young, said: “Bristol continues to be one of the UK’s strongest regional office markets, with high-quality, centrally located office space driving robust take-up. It is encouraging to see the largest city-centre deal in six years from Hargreaves Lansdown who acquired 90,000 square feet in the Welcome Building. This reflects the region’s ability to attract and retain major corporate businesses who continue to invest and recruit workforce in the area, driving economic activity.
“Strong rental performance and sustained occupier demand is being fuelled by the city’s focus on schemes that provide amenity-rich, highly sustainable and wellbeing-led designs. With only 120,000 square feet onsite being delivered in 2026 the development pipeline remains constrained which further increases competition for Grade A space and in turn, continues to drive rental growth.”