Take-up for Q1 2026 totalled 43,364 sq ft (Q1 2025: 253,722 sq ft), which is below the 5-year quarterly average (54,000 sq ft).

The quarter ended on a total of 12 transactions (17 in Q1 2025) with the average deal size 3,613 sq ft. Most of the lettings in the market are Grade A or Grade B+ with very little demand for buildings without significant capital investment or strong EPC rating.  Requirements are consistent, with criteria to include: central location, abundance of amenities, sustainability credentials ( de-gassed assets including EPC minimum B), tech rich and parking. The CAT A sub 3,000 sq ft letting market has dipped as the majority of smaller occupiers are opting to take space at the new serviced office supply in the city, which includes Wizu, Cubo, and Orega, or choose fully fitted traditional suites, albeit with limited options available.

During Q1,  major deals included 1 St James Gate – 7,309 sq ft letting to Origin Tech at £22.50 psf to and 3,318 sq ft letting to Gallagher at Doxford Works at £18.00 psf.

Rental incentives vary but average c.1.25 months per year term certain.

The differential between new build and refurbished Grade A rents remains clear, which will help encourage further refurbishment schemes in the market. Grade A availability has fallen significantly to around 100,000 sq ft.