While  UK office investment volumes softened in response to heightened geopolitical uncertainty in H1 2026, with turnover 7% below H1 2025, the outlook for the remainder of the year is increasingly positive. This sentiment is being supported by an expected increase in large lots  transacting. At the end of H1 2026, there were 14 assets that had either traded, been placed under offer, or were available over £50 million. If all these assets transact, this year’s annual deal number will be more than double the average volume of £50 million-plus deals completed over the last three years.

These transactions are expected to provide a significant boost to investment turnover, with the assets potentially expected to be sold for a combined total of £1.3 billion. Over the last decade, assets traded at more than £50 million have accounted for approximately 50% of total UK office investment volumes, underlining the importance of this lot size to overall market turnover.

The rise in owner-occupier deals

Notable transactions above this threshold in 2026, include Lloyds acquiring 10 Canons Way, its Bristol headquarters, for £71 million reflecting a yield of 7.5%. BNY acquired 4 Angel Square, Manchester for £114 million, representing another significant owner occupier transaction. The largest non-owner occupier transaction this year, meanwhile, was Melford Capital, purchasing Waverley Gate, Edinburgh, for £77.5 million reflecting a yield of 7.53%.

Notable assets which are currently being marketed at above £50 million include 3 Hardman Street and Havelock, both located in Manchester, where the quoting prices are £110 million and £59.5 million respectively. 

Attractive region office pricing

Current pricing levels are making regional offices appear attractive. The current prime regional office yield stands at 6.75%, which presents the widest gap to the Central London office market in over 30 years. Furthermore, only leisure and shopping centres have a higher prime yield. These pricing dynamics support the opportunity to acquire core assets at values that make core plus or, in some cases, value add returns achievable. 

Occupational market sustaining positive dynamics

The occupational market dynamics are also supporting investment into the sector, albeit performance remains heavily polarised based upon location and quality. Assets which are prime or grade A standard and – importantly - well-located, are experiencing above average levels of rental growth, against a backdrop of low levels of supply, a limited development pipeline and a flight to quality from occupiers. Savills is forecasting prime rental growth across the Big Six regional cities to average 12% over the next two years, which highlights the current reversionary nature of the market. 

Additionally, the return of more core buyers into the market, notably Local Government Pooling Schemes and certain overseas investors is improving confidence on exit pricing for business plans; this is aiding conviction from potential buyers.

Looking forward, it is expected that end year volumes in 2026 will continue the upward trajectory we have seen over the last two years.

Further information

Contact Simon Preece or Tom Fazakerley

Market in Minutes: Regional Office Investment Market Watch