The UK’s big six regional office markets have seen Q3 take up surge by 38% year-on-year to record the highest third quarter take up since 2018, Savills has reported.

The six regional markets – Birmingham, Bristol, Edinburgh, Glasgow, Leeds and Manchester – recorded overall city centre take-up of 1.2m sq ft in Q3, the firm said.

Birmingham’s office market performed exceptionally well, achieving a 165% Q3 YOY increase driven by two big education deals; Aston University taking 190,000 sq ft at 10 Woodcock Street and Global Banking School taking 68,000 sq ft at 1 Brindley Place.

Manchester (23%), Edinburgh (20%), Bristol (12%), Glasgow (8%) and Leeds (6%) also all reported better performance in take-up in Q3 compared to the same period last year.

The largest deal year to date was Bank of New York Mellon taking 197,000 sq ft at 4 Angel Square in Manchester.

James Evans, head of national office agency at Savills, says: “The UK regional office market has demonstrated remarkable resilience, with Q3 take-up reaching its highest level since 2018. While these figures are positive, we have noticed a slowdown in enquiries and decision making as we get closer to the Budget.”

Savills said the most active sector for take-up in Q3 was public services, education and healthcare, accounting for 30% of total take-up across the regional markets.

Rents continued to face upwards pressure due to occupiers competing for the best-in-class office space. Bristol saw the largest increase in rents year to date, rising 13%, while Birmingham (4%), Leeds (3%) and Manchester (2%) also saw rent rises.

The firm also noted an uptick in investor activity across the regional office investment market with £2.1bn transacted between Q1-Q3 2024, up 7% on the same period in 2023.

Activity is still subdued compared to average levels, with volumes 50% below the five-year average for the same time period.

James Emans, director, UK investment at Savills, added: “From an investment standpoint, volumes have been suppressed but we are now getting significantly more traction, which, given the positive occupational metrics, is not surprising.

“The combination of limited development pipeline and a dwindling supply of Grade A offices supports the projections of continued rental growth across the regional office markets, presenting opportunities for liquid and decisive investors.”