Newsteer’s Occupier Advisory team saw growing confidence turn into real commitment during 2025, advising on some of the UK’s most significant regional office transactions.
In Bristol, Newsteer supported Hargreaves Lansdown on its relocation to the 90,000 sq ft Welcome Building at Temple Quay. The move delivers excellent connectivity, strong ESG credentials and an amenity-led workplace designed around employee wellbeing and collaboration. It supports more than 2,000 staff while aligning closely with the company’s long-term business priorities.
In Manchester, Newsteer advised Autotrader on the relocation of its headquarters to No. 3 Circle Square, securing 130,000 sq ft across seven floors in a landmark £87 million development. Due for occupation in early 2026, the building delivers net zero carbon in construction and is targeting BREEAM Excellent, NABERS 5-star and EPC A ratings. Sustainability, operational efficiency and workplace experience were central to the decision-making process.
Together, these transactions highlight a broader regional trend: occupiers consolidating into fewer, better-performing buildings that support their people, brand and operational objectives.
Regional investment momentum strengthens occupier confidence as Newsteer looks ahead to 2026
As the UK enters 2026, this activity reflects a broader reset in how organisations are using real estate. Public investment, improving office attendance and a more strategic, data-led approach from occupiers are reshaping where and how businesses choose to locate. While the market remains selective, regional cities are increasingly well positioned to offer the quality, value and resilience occupiers are seeking.
This momentum was reinforced at the Government’s first Regional Investment Summit in Q3 2025, where more than £10 billion of investment was announced across life sciences, AI and innovation-led development. Major schemes include the redevelopment of Elland Road Stadium in Leeds, new life science and manufacturing facilities in Oxfordshire, and the continued expansion of Birmingham’s Knowledge Quarter. The message was clear: regional cities are central to the UK’s long-term economic strategy.
Office attendance stabilises as quality takes priority
After several years of adjustment, the UK office market reached a fragile equilibrium during 2025. Newsteer’s Occupier Advisory 2026 Property Market Forecast shows that office occupancy remained above 40% for much of the year, peaking at 42.2%, with strong mid-week attendance in several regional cities exceeding pre-pandemic levels.
Hybrid working remains embedded, with average attendance typically between 55-60%. However, the focus has shifted decisively from whether offices are needed to what kind of office best supports productivity, collaboration and talent retention. Location, sustainability, amenities and overall quality now play a defining role in occupier decision-making, driving a clear flight-to-quality.
This trend is being reinforced by wider market sentiment. Regions are “pushing at an open door”, with the Government’s investment agenda sending a strong signal to business. Occupiers are responding by committing to high-quality space in regional cities that offer both value and access to talent.
What 2026 holds for occupiers
Looking ahead, Newsteer expects market conditions in 2026 to become increasingly polarised. Prime, well-located offices with strong sustainability credentials are expected to remain in demand. In contrast, secondary and ageing stock faces rising vacancy, with Grade B and non-central offices in some locations forecast to approach 20% vacancy, increasing pressure on rents and values.
For occupiers, this creates opportunity. Widening rental incentives, greater landlord flexibility and the cost advantages of regional cities are strengthening negotiating positions. At the same time, rising business rates, service charges and ESG compliance requirements mean that total occupational cost is under sharper scrutiny.
Occupiers in 2026 will be more data-led and cost-aware, yet still focused on quality. The flight-to-quality isn’t about excess, but about securing space that works harder for the business and remains resilient as market dynamics continue to evolve.
Talk to our Occupier Advisory team
Newsteer’s award-winning Occupier Advisory service provides conflict-free advice across portfolio strategy, site search, acquisitions, lease re-gears and workplace optimisation. If you would like to discuss how these market dynamics could impact your organisation’s real estate strategy in 2026 and beyond, please contact Stephen Downey or David Felman for an informed, confidential conversation.