A new report from property giant Cushman & Wakefield has revealed that key UK cities are at risk of exhausting their premium office space within months. The firm's latest National Office Moves report indicates that businesses expanded across all regions and office size bands in 2025, a positive shift from previous years when downsizing was common. More than twice as many office occupiers who moved in 2025 increased their footprints rather than reducing them.
Grade A Supply Dwindling
However, the report highlights that dwindling Grade A supply, caused by a lack of new developments, means premium space is at a premium in the areas measured. In Birmingham, Edinburgh, Leeds, and Manchester, premium space is likely to be absorbed in under a year. The report analyzes the UK's 'Big Five' regional markets: Birmingham, Bristol, Edinburgh, Leeds, and Manchester, as well as the South East.
Of the 228 office deals by existing occupiers, 156 saw footprint growth, leading to a net expansion of 668,900 square feet in 2025. Cushman & Wakefield noted that occupiers overwhelmingly consolidated into high-quality, amenity-led offices, with 181 transactions for Grade A space, highlighting a clear preference for premium space. However, this focus has eaten into dwindling Grade A supply impacted by a lack of new development.
Expert Commentary
Charles Dady, head of national office agency at Cushman & Wakefield, said: “At the start of this year, Birmingham, Edinburgh, Leeds, and Manchester had less than one year’s supply of Grade A office space. If demand continues, that could all be absorbed within the next 12 months. In practice, the supply shortage may force some occupiers to extend or regear their existing leases while waiting for new stock. Without urgent investment in new, high-quality offices, occupiers will have little choice but to stand still.”
Regional Breakdown
Manchester accounted for 86% of deals and delivered a net gain of 308,500 square feet. Edinburgh, Birmingham, and Leeds recorded a more modest but still positive net expansion. The South East saw a significant net contraction in 2024 but a net gain of 182,900 square feet in 2025.
Sector Performance
The technology sector was the biggest growth sector, contracting in 2024 but expanding by 241,200 square feet in 2025. Science and innovation rebounded from the largest net contraction in 2024 to a net expansion of 146,200 square feet. Other growth sectors included media and healthcare. The insurance sector saw the most contraction in 2024, driven by significant downsizing in the South East. Business services, manufacturing, and energy also saw net contractions.
Large-scale occupiers drove the expansionary trend, with all activity over 100,000 square feet seeing occupiers taking more space. The biggest single regional office deal of 2025 was BAE Systems growing its presence by 155,500 square feet across two buildings at Green Park, Reading, under the Global Combat Air Programme. Other landmark lettings included Auto Trader taking 130,000 square feet at 3 Circle Square in Manchester, and law firm Burges Salmon renewing at One Glass Wharf in Bristol, taking the whole building with an extra 41,600 square feet.
Future Outlook
Joshua Woolnough, senior research analyst at Cushman & Wakefield, said: “Increased demand for larger, higher-quality office space reflects trends first highlighted in the Central London market last year. Growing confidence in the value of premium workspace is now evident in regional data. Occupiers that reduced space during the pandemic are now expanding again, with more than 80% of those whose previous move occurred post-2020 choosing to expand when relocating in 2025.”
