Demand for Grade A office space remains resilient across London and the UK’s major regional cities, as occupiers continue to prioritise high-quality, sustainable workplaces that support collaboration, employee wellbeing and business growth. Colliers’ latest Office Snapshots reveal that the flight-to-quality trend remains firmly established across the UK office market, with premium space continuing to command the strongest levels of demand.
In London, office take-up rebounded to 2.81 million sq ft in Q2 2026, 4% above the 10-year quarterly average and 19% higher than the previous quarter. Grade A space accounted for 76% of all transactions, underlining occupiers’ continued preference for best-in-class accommodation.
Technology-led businesses continue to play a key role in shaping occupier demand. In London, AI companies accounted for 19% of office take-up during Q2, making the sector the largest source of demand during the quarter. Major transactions included Anthropic’s 158,000 sq ft commitment at 1 Triton Square and OpenAI’s 88,500 sq ft letting at Regent Quarter.
The continued focus on quality space has contributed to tightening availability across the UK’s major office centres. New Grade A vacancy currently stands at just 1.2% in the City of London and 1.6% in the West End. In the West End, take-up reached 1.25 million sq ft during Q2, 29% above the long-term average and the strongest quarterly performance in more than two years.
Charlotte Ashton, Head of London Leasing comments: “Despite the volatile macroeconomic landscape, which has created uncertainty almost every year since Brexit in 2016, occupiers have continued to press ahead with real estate decisions. The investment market has been buoyed by this positive occupational story, with the flight to high-quality space driving rental growth and increasing competition for the very best buildings. Location remains king, and brilliantly designed buildings with best-in-class amenities are outperforming the market. It is no longer sufficient to simply install bike racks and showers, with landlords increasingly balancing the loss of net internal area (NIA) against the potential rental uplift from premium amenity spaces such as rooftop pavilions, fitness studios and client lounges.
“Looking ahead, we expect an even greater focus on wellbeing, with plunge pools, saunas and meditation spaces joining the long list of occupier requirements. Landlords must ensure their buildings stand out during viewing tours through the design and quality of receptions, WCs, roof terraces and communal areas. Thoughtful design creates a distinct sense of personality and identity, making buildings more memorable and attractive to prospective occupiers.”
These trends are mirrored across the regional markets. In Birmingham, Grade A offices accounted for 71% of take-up during the first half of 2026, while Bristol recorded take-up 22.6% above the five-year average, marking one of the city’s strongest performances of recent years. Manchester’s office market remained in line with its five-year average, while Leeds saw a significant uplift in activity during Q2, recording its highest quarterly take-up since Q1 2025.
Birmingham, Manchester, Bristol and Leeds all report Grade A vacancy rates below 1%. Meanwhile, Bristol’s Grade A pipeline is more than 85% leased, Manchester’s availability has fallen to its lowest level since 2021, and Leeds prime rents have reached a record £52.50 per sq ft, reflecting continued competition for high-quality space.
Dominic Pozzoni, Head of National Offices added: “The first half of 2026 has reinforced a clear trend across the UK regional office market: occupier demand remains firmly focused on high-quality Grade A space, while available supply continues to tighten. Despite varying levels of leasing activity between cities, the strength of rental growth and exceptionally low new-build vacancy rates in key regional centres underline the resilience of the market. With development pipelines remaining constrained and businesses continuing to prioritise best-in-class workplaces, we expect further upward pressure on rents and continued competition for prime space through the remainder of the year.”
Colliers expects occupier demand for Grade A office space to remain a defining feature of the market throughout the second half of 2026, supporting ongoing investment in both refurbishment programmes and new development opportunities across the UK.
