The Devono Insights team is excited to share the latest edition of The UK5, uncovering key office trends across Birmingham, Bristol, Glasgow, Leeds, and Manchester in 2024.
A year of regional growth
2024 marked a renaissance for regional office markets, with four out of the UK5 cities ending on a high note and recording an increase in leasing activity on the previous year, driving rental growth and market confidence. Larger deals made a comeback, and new sectors emerged to drive momentum.
Rental trends
All the cities have seen an uplift in rents in 2024, with some prime rents resting at new highs in the latter part of the year. Pressure remains however, as landlords remain confident in the demand for the best spaces.
Rise of Flexible Offices
Flexible workspace demand is shifting, with some cities seeing price increases while others remain stable, reflecting changing occupier preferences for agility and quality.
Grade A supply challenge
Despite the rising price tag, demand for Grade A office space remains strong, pushing supply to its limits in some cities while secondhand stock continues to soar across all markets.
See below for some key points from the report:
- Birmingham: 2024 leasing at its highest post-pandemic level, Grade A share of available space is the lowest of the UK 5, and flex pricing for Grade B spaces up to £175.00 pdpm.
- Bristol: Office space availability surged by 28% in Q3 2024, prime rents rise 13% over the year to £48.00 per sq ft, and serviced office desk rates for both Grade A and B spaces are on the rise.
- Glasgow: Leasing in 2024 was up 50% on 2023, prime rents were the most stable of the UK 5 increasing by only 3%, and serviced office desk rates remained at an average of £325.00 pdpm.
- Leeds: Leasing fell 13% in 2024, Grade A share of available space is the largest of the UK 5, and an uplift to £40.00 per sq ft pushes prime rents above those in Glasgow.
- Manchester: 413K sq ft leased in Q3 2024 represented the highest quarterly level since Q3 2019, total availability was up 18% across 2024, and prime rents were stable at the £45.00 per sq ft high.
Click on the report image below to download the document.
If you would like any further information on this report and its insights, please do get in touch or alternatively you can find more on our website at www.devono.com
