Office Construction Rises as Staff Return
Glenigan reports that new office construction has been a bright spot for the industry this summer. The value of office project starts rose 34% in the three months to July compared with a year earlier, driven by medium and larger schemes in the £20–100 million range, particularly in the English regions, and by firms needing space for staff returning to the office.
Momentum appears to be building. The Glenigan Index shows office starts in the three months to August were slightly more than double the previous three months and 232% higher year on year, and Glenigan's 2025–27 forecast predicts a 14% rise in underlying office starts this year and a further 23% in 2026.
Regional growth has been striking. Starts in May to July rose more than fivefold year on year in the West Midlands, more than threefold in the South West and almost threefold in the North West, while main office contract awards were up 16% overall.
Savills found that take-up across the Big Six regional office markets in the first half of the year was 4% above the five-year average, with Manchester 32% above its average. With limited developer confidence constraining new-build supply, refurbishments will account for 84% of speculative space in those cities over the next three years. Cushman & Wakefield reports that most firms relocating in key regional cities have expanded their footprint, and the British Council for Offices says regional desk use is around 7% higher than in London.
Upcoming schemes tracked by Glenigan include:
• An £80m office extension at 31 Wellington Street, Leeds, for Asset Capital, with Clegg Group as main contractor • The £120m Westbank Leeds scheme of three offices and a hotel, due to start early next year • A £30m scheme of two six-storey office buildings at Airport City North, Manchester • The £32.24m eight-storey Brabazon Station Office at the former Filton Airfield in Bristol, for YTL Developments
