What I'm telling clients right now
- It's a two-speed market — prime, sustainable space is scarce; secondary stock is under real pressure.
- Flight to quality is genuine — occupiers will pay for amenity, wellness and low running costs.
- Regional cities are rebounding — Manchester, Leeds and Birmingham on value, talent and investment.
- Refurb and repurposing of tired offices is the standout landlord opportunity.
Hybrid didn't kill the office — it reset it
The doom-loop headlines got it wrong. Office attendance has stabilised, and the businesses I act for aren't abandoning space — they're upgrading it. The office has become a deliberate destination for culture and collaboration, which means the quality bar has risen sharply.
The result is that the best space is in short supply even as overall vacancy looks high. Those two facts sit side by side because the vacancy is concentrated in older, poorer-quality buildings that today's occupiers simply won't take.
Flight to quality, explained
When occupiers consolidate into a smaller, better footprint, they concentrate demand on Grade A. They want amenity — good end-of-trip facilities, wellness, food and best-in-class connectivity — and, increasingly, strong environmental credentials that keep running costs and EPC risk low.
That's pushing prime rents to record levels in the best buildings while secondary rents stall. For occupiers it means acting early on the best space; for landlords it means the gap between prime and secondary is now the defining feature of the market.
The regional rebound
The most interesting demand isn't in London — it's in the regional cities. Manchester leads, with occupiers drawn by talent, regeneration and a cost base well below the capital; Spinningfields, NOMA and St John's continue to attract national names. Leeds and Birmingham tell similar stories.
For a business weighing London against a regional HQ, the maths increasingly favours the regions: comparable Grade A, a fraction of the rent, and access to graduate talent from strong universities.
Secondary stock: problem or opportunity?
The flip side of flight to quality is a growing pool of offices nobody wants in their current state. Many face obsolescence and rising EPC risk under tightening energy standards. Left alone, they're a drag on value.
But repositioned — refurbished to a higher spec, greened up, or repurposed to residential, lab or flexible space — that same stock is where some of the best returns now sit. The landlords who invest, rather than wait, are the ones capturing the flight to quality instead of losing to it.
What it means for occupiers and landlords
For occupiers, my advice is to secure quality early and budget properly for fit-out — the best buildings let fast and the incentives on offer are tightening. For landlords, the choice is increasingly binary: invest to compete for quality-led demand, or reposition the asset for another use.
Here's how the major regional office markets are shaping up.
| City | Key driver | Prime rent trend |
|---|---|---|
| Manchester | Talent & regeneration | ▲ Rising |
| Leeds | Financial & digital sectors | ▲ Firm |
| Birmingham | Relocation & connectivity | ▲ Rising |
| Secondary stock (all cities) | Obsolescence & EPC risk | ▼ Under pressure |
This article is general market commentary. Figures are indicative and not investment advice; market conditions change frequently.
JHJordan advises office occupiers and landlords across Greater Manchester and the North West on acquisitions, repositioning and lease strategy. Reviewing your office requirement? He's happy to talk it through — no obligation.
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