This follows an estimated 16% increase in the value of office starts this year with the third quarter alone registering a 82% year-on-year surge.

Glenigan has identified several drivers behind this surge in office real estate investment, such as a growing demand for high-quality office space and employers’ need to attract staff back into the workplace.

New office schemes are helping this growth, as opposed to just refurbishments.

Glenigan data shows that underlying project starts (those under £100m) for new offices are on course to reach £2bn in 2025, up from £1.4bn the year before.

•   The Finance Professional Show 2025: The Video
•   Construction activity creeps up as industry awaits Budget
•   Landlords shift focus to office space as London applications surge 100%

Importantly, the construction data provider is seeing this growth as not just restricted to London. For example, prime office rents have risen to £50 per sq ft in Bristol, the highest outside London.

Glenigan’s findings align with that of a recent report from Knight Frank which identified positive trends around major UK regional cities.

This report noted that the take-up of office space by businesses in ten key regional business centres — Aberdeen, Edinburgh, Glasgow, Newcastle, Leeds, Manchester, Sheffield, Birmingham, Cardiff and Bristol — rose to 1.22 million sq ft in the third quarter of this year, up 19% on the previous three months.

Seven out of the 10 saw rents rise by up to 20% over the year as competition for new or recently completed Grade A space combined with limited new supply.