UK office market take-up reaches three-year high

CBRE's latest research shows a significant rebound in the UK office market, with take-up reaching a three-year high in Q2 2025. 

Office stock

Total office space leased across the UK in the past 12 months hit 1.89 million m2, the strongest figure since Q3 2022. This represents a 3% year-on-year increase and sits 2% above the 10-year average.
Central London drove much of this activity with 1.1 million m2 leased, followed by the UK regions (604,000 m2) and the South East (223,000 m2). Central London saw a surge in large deals, with five transactions exceeding 9,290 m2 – the most in a quarter since 2018. Regionally, Altrad's 6,545 m2 acquisition in Aberdeen topped the charts, followed by Aviva Central Services in Southampton and Softcat in Manchester.
The increased demand has led to a 3% drop in available office space in regional markets, although current availability remains in line with the five-year average. New construction is limited, accounting for less than a quarter of the total available space.
In the first half of 2025, 149,000 m2 of new office developments were completed in regional markets, with 41% already leased. An additional 74,000 m2 is expected to complete by year-end. Longer term, 288,000 m2 is under construction with completion dates up to 2028, of which 17% is pre-let or under offer.
The Tech, Media, and Telecoms (TMT) sector was the biggest driver of demand nationally, accounting for over a quarter of all take-up – a ten-year high. However, sector dominance varied by location. TMT led in Manchester, while Banking and Finance topped the list in Edinburgh and Central London. Manufacturing, Industrial & Energy companies were the primary occupiers in Oxford and the South East.
Simon Brown, head of UK Office Research, commented: “Our data shows us that in recent quarters, take-up has started to climb back above the 10-year average, which aligns to our view that occupiers are starting to take larger office footprints again. The UK office market is starting to show clear signs of normalisation after a period of relatively low demand. Driven by an increase in return-to-work mandates, we expect companies across the country to continue to acquire space to meet the demands of their growing workforces.”
Rob Madden, head of UK Investor Leasing, added: “We know that the quality of the building itself is a top priority for occupiers, but so is location. Choosing the right UK market to access the best talent will be determined by the sector you operate in, but beyond that, accessibility and surrounding amenities are incredibly important. However, the thinning supply of new stock and the physical cost of moving are likely to result in more regears. If the office is well located and can be refurbed to meet the future needs of the occupier, staying put is a compelling option.”