Location, location, location

Location remains the dominant driver of occupier decision-making, with 79% of respondents identifying it as the primary factor in office relocations, the survey shows that 73% of respondents anticipate rising take-up in prime city centre locations.

The divergence between high-quality and secondary out-of-town office space is expected to widen further with 47% of respondents expecting take-up to increase for best-in-class business parks and 59% anticipate falling demand for secondary business park assets.

A total of 91% of respondents expect prime rents to rise in 2026, with 82% also forecasting growth for Grade A space. In contrast, 68% expect Grade B rents to either fall or remain static, reinforcing the continued polarisation across the market.

The best versus the rest

The flight to quality is expected to persist, with 65% of respondents forecasting increased take-up for prime office space. Conversely, 74% expect demand for Grade B accommodation to remain flat or decline.

Limited supply is likely to constrain prime take-up in some markets. Prime vacancy rates are now below 3% across all Big Six regional city office markets. Reflecting this, 24% of respondents anticipate a fall in prime take-up due to availability constraints. Grade A buildings are expected to benefit, with 12% predicting take-up growth of more than 20% in 2026.

Ongoing demand resilience

Occupiers are not expected to make significant changes to overall office footprints in 2026. The survey indicates a modest bias toward expansion, with 45% of respondents expecting occupiers to increase space requirements, though none anticipate increases of more than 20%. No respondents foresee reductions in floorspace of 20% or more.

Deal speed remains a challenge as fitted demand rises

Tenant decision-making is expected to remain cautious. Some 62% of respondents expect deal speed to remain slow, while a further 24% anticipate decision-making timelines will lengthen.

Demand for Cat A+ and fitted office space is expected to grow with around 65% forecast increased demand for fitted accommodation, while 59% anticipate stronger demand for more flexible lease terms. This aligns with recent market evidence, with fitted lettings becoming more common in Central London and Manchester recording a 103% increase in fitted office take-up in 2025 compared with 2024.

Professional services to lead take-up

Professional services firms are expected to be the most active occupier group in 2026, selected by 76% of respondents. The sector accounted for 26% of take-up across the Big Six regional city markets in 2025, making it the most active overall. Technology and insurance and financial services followed, accounting for 16% and 13% of take-up respectively in 2025.

Refurbishment activity to rise as new development remains subdued

A limited development pipeline is expected to keep supply constrained, placing continued upward pressure on prime rents. Only 6% of respondents expect development starts to increase in 2026.

Refurbishment activity is expected to play a greater role, with 59% anticipating an increase. Yield compression was identified as the key catalyst for new speculative development, followed by sustained rental growth.

Sustainability credentials

The survey also highlighted the fall in sustainability as a critical priority in the occupier decision making process. Respondents attributed this to the fact that most office buildings have now provide a relatively sustainable proposition compared to 10 years ago, with landlords having degassed or improved energy ratings throughout their portfolio.  In some respect, many of the credentials expected by occupiers are now a given.

Further information

Contact Simon Preece

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