FMJ Facilities Management magazine providing industry-specific intelligence to FM and property professionals
A new report from Devono, a leading occupier-only advisory firm in the UK, states 2024 marked a renaissance for the UK’s key regional office markets, with four out of the UK5 cities – Birmingham, Bristol, Glasgow, Leeds, and Manchester – experiencing an improvement in leasing activity. According to the report, this momentum fuelled rental growth, strengthened market confidence, and signalled a return of larger transactions, alongside the emergence of new sectors driving demand.
Rental Trends: On the Rise
All five cities saw rental growth throughout 2024, with some prime rents reaching record highs in the latter part of the year. Despite the increasing price tags, landlords remain confident in strong demand for the highest-quality spaces, sustaining upward pressure on rents.
The Rise of Flexible Workspaces
Occupier demand for flexible office solutions continues to evolve. While some cities experienced price increases, others remained stable, reflecting shifting preferences for agility and premium-quality workspace options.
Grade A Supply Challenges
Demand for Grade A office space remains robust, pushing supply to its limits in certain markets. Meanwhile, secondhand stock continues to rise across all five cities, presenting both challenges and opportunities for occupiers and landlords alike.
Shaun Dawson, Head of Insights at Devono commented: “The UK5 office markets have proven their resilience, with rental growth and strong leasing momentum shaping 2024. As we move into 2025, the balance between supply constraints and evolving workplace strategies will be critical in determining the next phase of market activity.”
Key Insights from the Report
Birmingham: Leasing activity reached its highest post-pandemic level in 2024. Grade A share of availability is now the smallest among the UK5, while flexible office pricing for Grade B spaces climbed to £220.00 per desk per month (pdpm).
Bristol: Office availability surged 28% in Q3 2024, while prime rents rose 13% over the year to £48.00 per sq ft. Serviced office desk rates for both Grade A and B spaces also saw an upward trend.
Glasgow: Leasing activity increased by 50% year-over-year, with prime rents showing the most stability among the UK5, rising by just 3%. Serviced office desk rates held steady at an average of £325.00 pdpm.
Leeds: Leasing declined by 13% in 2024, yet the city now holds the largest share of available Grade A space among the UK5. Prime rents saw an uplift to £40.00 per sq ft.
Manchester: Leasing activity in Q3 2024 reached 413,000 sq ft—the highest quarterly level since Q3 2019. Total availability rose by 18% throughout the year, while prime rents remained stable at £45.00 per sq ft.
Dawson added: “Occupiers continue to prioritise flexibility and quality, driving demand for best-in-class office spaces across the UK5. However, with Grade A supply tightening in key cities, businesses may need to act swiftly to secure the right space before competition intensifies.”
