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Commercial Office Construction Market Report GB 2026-2030

This is the 7th edition of the Commercial Office Construction Market Report – GB 2026-2030. The report examines the size and performance of the Commercial Office Construction market, includes a detailed regional analysis, profiles key contractors, and highlights market trends and drivers. It also provides a market forecast extending to 2030.

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Market Summary

Office construction output in Great Britain experienced a significant slowdown in 2025, and the outlook remains subdued for the near term. Viability challenges continue to push back project starts due to rising construction and borrowing costs, planning complications, and economic uncertainties. However, the sector is witnessing strong refurbishment activity, as landlords upgrade existing stock to meet the high demand for high-specification office space. New construction activity is expected to return to stronger growth from 2028 as shortages in Grade A supply need to be addressed.

 

 

Report Overview

This is the 7th edition of the report and provides a comprehensive analysis of the GB commercial office construction market, covering market size, detailed regional performance and key trends in major cities. It examines major market indicators including construction output, new orders, contract awards, office take-up, supply, and development pipelines, supported by a full PESTLE analysis. Additionally, the report highlights leading developers, clients and contractors based on recent contract awards. The report concludes with annual forecasts for office construction output through to 2030, providing valuable insight for businesses operating across the commercial office sector.

 

 

Market Size 

Office construction output declined by 20% in 2025, according to ONS data. This downturn is primarily attributed to increased caution among developers and investors due to economic uncertainty, weak business confidence, and high construction and borrowing costs.

 

 

Market Trends and Influences

Several key trends and influences are shaping the Office Construction market:

 

  • Office occupier demand has recovered since 2024, following reassessments of needs post-COVID-19, characterised by a distinct “flight to quality“. Companies are prioritising Grade A, amenity-rich, and ESG-compliant spaces.
  • Despite the recovery in demand, viability challenges continue to push back project starts in the new build sector.
  • Supply of Grade A offices is tightening across London and key regional cities.
  • With Grade A vacancy tight across core locations, larger occupiers are increasingly expected to look beyond prime areas, seeking either lower cost or better-quality stock in less central areas.
  • ESG regulations and the transition to net zero are increasing specification requirements, meaning only the best-in-class projects are moving forward.
  • With new build activity limited, landlords are focusing on high-quality refurbishments.

 

 

Companies Mentioned

Key contractors discussed in the report include:

Mace
Multiplex Construction Europe
Skanska UK
McLaughlin & Harvey
Lendlease/Bovis
Morgan Sindall Group
McLaren Construction
Bowmer & Kirkland
Gilbert-Ash
John Sisk & Son
8Build
Glencar Construction
Collins Construction
Faithdean
Kier Group
Wates Construction
RED Construction Group and more

 

 

Market Forecast

UK office construction output is expected to remain subdued in the near term. Stronger growth is anticipated from 2028 as shortages in Grade A supply need to be addressed.

 

 

1 INTRODUCTION

  • 1.1 Background
  • 1.2 Definitions
  • 1.3 Abbreviations
  • 1.4 Sources of Information

2 MARKET SUMMARY AND PROSPECTS

  • 2.1 How the Market Has Been Performing
  • 2.2 Key Trends Driving the Market
  • 2.3 Prospects: Pipeline from 2026

3 MARKET OVERVIEW

  • 3.1 Output
    • 3.1.1 Wider Context: Non-Residential Construction Output to 2025
    • 3.1.2 Construction Output in the Offices Sector
  • 3.2 New Orders and Contract Awards
  • 3.3 Office Take-up
  • 3.4 Availability/vacancy rates
  • 3.5 Rental Growth
  • 3.6 End-Use Sectors and Splits
  • 3.7 Pipeline

4 MARKET INFLUENCES AND DRIVERS

  • 4.1 Political
    • 4.1.1 National Planning Policy Framework
    • 4.1.2 Planning Reform Amendments
    • 4.1.3 London Plan
    • 4.1.4 Planning Policy for High-rise Building
  • 4.2 Economic
    • 4.2.1 Overall Economic Performance
    • 4.2.2 Rising Construction Costs
  • 4.3 Social
  • 4.4 Technological
    • 4.4.1 MMC
    • 4.4.2 Digital
  • 4.5 Legal
    • 4.5.1 Legislative Changes
    • 4.5.2 Energy Performance Standards
  • 4.6 Environment
    • 4.6.1 The Green Premium commands higher rents and occupancy
    • 4.6.2 Environmental Rating Schemes
    • 4.6.3 Key Green trends for 2026 and beyond
    • 4.6.4 Examples of Best-in-Class Green Offices:
    • 4.6.5 Green Roofs

5 REGIONAL ANALYSIS

  • 5.1 London
    • 5.1.1 Spatial overview
    • 5.1.2 Key metrics
    • 5.1.3 Development pipeline
    • 5.1.4 Key schemes
  • 5.2 Regional Office Markets Overview
    • 5.2.1 Key metrics
    • 5.2.2 Development pipeline
  • 5.3 Manchester, Liverpool and the Northwest
    • 5.3.1 Take-up and Supply in Manchester and Liverpool
    • 5.3.2 Key schemes in the Northwest
  • 5.4 Birmingham and the West Midlands
    • 5.4.1 Take-up and Supply in Birmingham
    • 5.4.2 Key Schemes in the East and West Midlands
  • 5.5 Glasgow, Edinburgh and Scotland
    • 5.5.1 Take-up and Supply in Glasgow and Edinburgh
    • 5.5.2 Key Schemes in Scotland
  • 5.6 Leeds and Yorkshire and Humber
    • 5.6.1 Take-up and Supply in Leeds
    • 5.6.2 Key schemes in Yorkshire and Humber
  • 5.7 Cambridge and East of England
    • 5.7.1 Take-up and Supply in Cambridge
    • 5.7.2 Key schemes in the East of England
  • 5.8 Oxford and the South East
    • 5.8.1 Take-up and Supply in Oxford
    • 5.8.2 Key schemes in The South East
  • 5.9 Bristol and The South West
    • 5.9.1 Take-up and Supply in Bristol
    • 5.9.2 Key schemes in the South West
  • 5.10 The North East
    • 5.10.1 Key schemes in the North East
  • 5.11 Cardiff and Wales
    • 5.11.1 Take-up and Supply in Cardiff
    • 5.11.2 Key schemes in Wales

6 SUPPLY

  • 6.1 Leading Contractors – market share
  • 6.2 Leading Contractors profiles
    • 6.2.1 Mace
    • 6.2.2 Multiplex Construction Europe Limited
    • 6.2.3 Skanska UK
    • 6.2.4 McLaughlin & Harvey
    • 6.2.5 Lendlease / Bovis
    • 6.2.6 Morgan Sindall Group
    • 6.2.7 McLaren Construction Limited
    • 6.2.8 Bowmer & Kirkland Limited
    • 6.2.9 Gilbert-Ash Limited
    • 6.2.10 John Sisk & Son Limited
    • 6.2.11 8build
    • 6.2.12 Glencar Construction Limited
    • 6.2.13 Collins Construction Limited
    • 6.2.14 Faithdean Limited
    • 6.2.15 Kier Group Plc
    • 6.2.16 Wates Construction Limited
    • 6.2.17 RED Construction Group
  • 6.3 Leading Architectural Practises and Developers in the office sector
    • 6.3.1 Developers / key clients
    • 6.3.2 Key Architects

7 FORECAST AND PROSPECTS

  • 7.1 Total construction output forecast
  • 7.2 Office construction output forecast

Figure 1: List of abbreviations
Figure 2: Office Construction Pipeline, Confirmed Projects, 2026-2030 (£bn)
Figure 3: Non-Residential Construction Output by Sector (GB) 2000 –2025, By Value Non-Seasonally Adjusted (£m at current prices)
Figure 4: Total Non-Residential Construction Output (GB) by Sector 2025, % by Value
Figure 5: Office Construction Output by Value, 2000-2025, (£m at current prices)
Figure 6: Contractor’s Output in the Offices Sector (Public & Private), 2010-2025, (£m at current prices)
Figure 7: Office Construction Output and New Orders Trend, by Value, 2006-2025(£bn at current prices)
Figure 8: Contract & Subcontract Awards, by Number and Value, 2021-2025 (£bn)
Figure 9: GB Office Market Take-up, London and the Big Six, 2025 (Sq ft)
Figure 10: GB Office Market: London and the Big Six Supply and Vacancy Rate, 2025
Figure 11: GB Office Market: Take-up, Prime Rents and Availability, London markets and the Big Six, 2025
Figure 12: GB Office Market: Take-up by End-Use Sector, 2025 (%)
Figure 13: GB Office Market: Take-up by End-Use Sector, Central London and Key Regional Cities, 2025 (%)
Figure 14: GB Office Market: Project Pipeline by Planned Finished Date, 2026-2030 (£m)
Figure 15: GB Office Market: Total Project Pipeline, by Planned Completion Date, Value and Numbers of Projects, 2026-2030 (£m)
Figure 16: GB Office Market: Project Pipeline, by Planned Start date, Value and Numbers of Projects, 2026-2028 (£m)
Figure 17: The National Model Design Code (NMDC): The Ten Characteristics of Well-Designed Places
Figure 18: London CAZ Zones and Opportunity Areas
Figure 19: Economic indicators summary from 2019-2026
Figure 20: Construction Material Annual Price Inflation, 2018-2025 (%)
Figure 21: Average Weekly Earnings Annual Growth Rates for Regular Pay by Sector in GB, Seasonally Adjusted, 2020-2026 (%)
Figure 22: Scotland vs. England EPC standards
Figure 23: Examples of Best-in-Class Green Offices
Figure 24: London Boroughs Grouped by London Plan spatial area
Figure 25: London Office Market: Take-up by End-Use Sector, 2025 (%)
Figure 26: London Office Market Pipeline: Contracts by New Build or Refurbishment, 2026
Figure 27: London Office Contracts in the Pipeline by London Plan Spatial Area, as of April 2026
Figure 28: Top New Build London Office Contracts, all those above £100m, completion date 2026 onwards
Figure 29: Top Fit-out and Refurbishment London Office Contracts, all those above £100m, completion date 2026 onwards
Figure 30: Regional Office Market: Take-up levels (Sq. ft m), Major Cities, 2025
Figure 31: Regional Office Market: Rents and YOY growth, Major Cities 2025
Figure 32: Regional Office Market: Availability and Vacancy rates, Major Cities 2025
Figure 33: Regional Office Market: Confirmed Projects in Pipeline, Ranked, by Region, New Build vs Refurbishment, with completion date 2026 onwards
Figure 34: Regional Office Market: Confirmed Contracts in Pipeline, completion date 2026 onwards
Figure 35: Regional Office Market: Confirmed Contracts in Pipeline for Key Cities, New Build vs Refurbishment, completion date 2026 onwards
Figure 36: Regional Office Market: Key Cities Confirmed Contracts in Pipeline, completion date 2026 onwards
Figure 37: Regional Office Market: Opportunity: Potential vs Confirmed Contracts in Pipeline, completion date 2026 onwards (£m)
Figure 38: City Office Market: Opportunity: Potential vs Confirmed Contracts in Pipeline, completion date 2026 onwards (£m)
Figure 39: Manchester Office Market: Take-up by End-Use Sector, 2025 (%)
Figure 40: Liverpool Office Market: Take-up by End-Use Sector, 2025 (%)
Figure 41: North West Office Market: Top Confirmed Contracts in Pipeline (all over £10m), completion date 2026 onwards
Figure 42: Birmingham Office Market: Take-up by End-Use Sector 2025 (%)
Figure 43: Midlands Office Market: Top Confirmed Contracts in Pipeline, completion date 2026 onwards
Figure 44: Glasgow Office Market: Take-up by End-Use Sector 2025 (%)
Figure 45: Edinburgh Office Market: Take-up by End-Use Sector 2025 (%)
Figure 46: Aberdeen office Market: Take-up by End-Use Sector 2025 (%)
Figure 47: Scotland Office Market: Top Confirmed Contracts in Pipeline, with completion date from 2026 onwards
Figure 48: Leeds Office Market: Take-up by End-Use Sector 2025 (%)
Figure 49: Yorkshire and Humber Office Market: Top Confirmed Contracts in Pipeline, with completion date from 2026 onwards
Figure 50: Cambridge Office Market: Take-up by End-Use Sector 2025 (%)
Figure 51: East of England Office Market: Top Confirmed Contracts in Pipeline, with completion date from 2026 onwards
Figure 52: Oxford Office Market: Take-up by End-Use Sector 2025 (%)
Figure 53: South East Office Market: Top Confirmed Contracts in Pipeline, with completion date from 2026 onwards
Figure 54: Bristol Office Market: Take-up by End-Use Sector, 2025 (%)
Figure 55: South East Office Market: Top Confirmed Contracts in Pipeline, from 2026
Figure 56: North East Office Market: Top Confirmed Contracts in Pipeline, from 2026
Figure 57: Wales Office Market: Top Confirmed Contracts in Pipeline, from 2026
Figure 58: Top 20 Contractors, by Value of Contract Awards, April 2024- April 2026
Figure 59: 20 Top Contractors – Estimated Breakdown of New Build Vs Refurbishment, April 2024 – April 2026 (£m)
Figure 60: Mace Forward Pipeline, Key projects, with completion dates 2026 onwards, (above £75m)
Figure 61: Multiplex Forward Pipeline, Key projects, with completion dates 2026 onwards
Figure 62: Skanska Forward Pipeline, Key projects, with completion dates 2026 onwards
Figure 63: McLaughlin and Harvey Forward Pipeline, Key projects, with completion dates 2026 onwards
Figure 64: Lendlease / Bovis Forward Pipeline, Key projects, with completion dates 2026 onwards
Figure 65: Morgan Sindall Forward Pipeline, Key projects, with completion dates 2026 onwards
Figure 66: McLaren Construction Ltd Forward Pipeline, Key projects, with completion dates 2026 onwards
Figure 67: Bowmer and Kirkland Forward Pipeline, Key projects, with completion dates 2026 onwards
Figure 68: Gilbert Ash Forward Pipeline, Key projects, with completion dates 2026 onwards
Figure 69: John Sisk Forward Pipeline, Key projects, with completion dates 2026 onwards
Figure 70: 8Build Forward Pipeline, Key projects, with completion dates 2026 onwards
Figure 71: Glencar Construction Ltd Forward Pipeline, Key projects, with completion dates 2026 onwards
Figure 72: Collins Construction Ltd Forward Pipeline, Key projects, with completion dates 2026 onwards
Figure 73: Faithdean Forward Pipeline, Key projects, with completion dates 2026 onwards
Figure 74: Kier Group forward pipeline 2026, Key projects, with completion dates 2026 onwards
Figure 75: Wates Construction Ltd forward pipeline, Key projects, with completion dates 2026 onwards
Figure 76: RED Construction Group forward pipeline, Key projects, with completion dates 2026 onwards
Figure 77: Estimated Project Value Breakdown for Developers, by Sector, Contracts awarded between April 2024-April 2026 (£m)
Figure 78: Top 23 Developers/Clients by Value of Award, Contracts awarded between April 2024-April 2026
Figure 79: Top 33 Architects by largest value projects with contracts awarded between April 2024 and April 2026
Figure 80: GB Construction Output, New Work and RMI, by Value (£bn) 2021-2025 and Forecast to 2030
Figure 81: GB Office Sector New Work Output, by Value, 2021-2025 and Forecast to 2030 (£bn)

Commercial Office Construction Market Report GB 2026-2030

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Meet the expert

Claudia is a research manager with over 20 years of experience in the UK B2B market research sector. With strong research, analytical, and writing skills, she is committed to delivering actionable market insights that support informed decision-making.
Office construction activity is expected to remain subdued in the near term as viability challenges continue to push back projects. This is despite robust occupier demand for Grade A office space, reflecting the continuing flight-to-quality trend as businesses prioritise high-quality, amenity-rich and ESG-compliant space. With new-build activity constrained, landlords are increasingly turning to major refurbishment projects to meet evolving occupier requirements. While this will help improve the quality of existing stock, refurbishment activity alone is unlikely to address the growing shortage of Grade A space. A sustained recovery in new-build development will depend on stronger market fundamentals and a more stable economic environment. Although the outlook remains uncertain, we expect a return to stronger activity from 2028 onwards, helping to alleviate Grade A supply constraints.

Claudia Preedy

Research Manager

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