Market conditions are driving a rise in office owner-occupiers across the UK.
Office investment activity across the UK’s regional cities is evolving, with owner occupiers emerging as an increasingly influential buyer group. Historically, owner occupiers represented a relatively small segment of the purchaser market; however, changing market conditions and pricing dynamics have accelerated this trend significantly over the last 18 months.
According to MSCI, regional office values have decreased by 39% since 2019, creating an opportunity for occupiers to acquire assets at discounted pricing levels. For a growing number of businesses, this shift has presented the chance not only to secure long-term occupational control, but also to strengthen the opportunity for strategic property ownership.
This trend is now clearly reflected in investment activity: owner occupiers were the most active investor group in 2025, accounting for 35% of total regional office investment volumes. Momentum has continued into 2026, with owner occupiers representing 30% of investment activity up to the end of May 2026.
Major occupiers are increasingly acquiring their own buildings
Several high-profile transactions demonstrate the growing confidence of occupiers in acquiring their own real estate. In Manchester, Bank of New York Mellon acquired its headquarters at 4 Angel Square in NOMA for £114 million, having previously occupied the building as a tenant.
In Bristol, Lloyds Bank acquired 10 Canons Way for £65 million, reflecting a net initial yield of 8.2%. Other notable occupiers including Adanola, Crew Clothing and Princes Group have also acquired their office buildings as part of longer-term operational strategies in the last 18 months.
The trend is not limited to traditional office occupiers. In Oxford, science and innovation-led businesses have also been active: the Ellison Institute has acquired several sites to support its future requirements and ProImmune previously acquired an entire business park for owner occupation purposes. Although these examples are more science and laboratory focused, they reflect the broader shift towards businesses seeking greater control over their real estate.
One of the key drivers behind this trend is the scale of rental growth across the UK’s major regional office markets. Prime office rents across the Big Six regional cities have increased by an average of 29% over the last five years, materially increasing occupational costs for businesses considering relocation or lease renewal.
While many occupiers remain willing to pay premium rents for best-in-class space, acquiring a headquarters building can provide longer-term cost certainty and protection against future rental inflation. In addition, many occupiers recognise the potential for future yield compression over the medium to long term, creating opportunities for value appreciation.
The increase in owner occupier activity reflects more than opportunistic acquisitions, it signals a broader shift in how businesses are approaching occupational strategy, capital allocation and long-term operational resilience.
As market conditions continue to evolve, owner occupation is likely to remain an increasingly important feature of the regional office investment landscape, particularly amongst businesses seeking greater control, cost certainty and strategic flexibility.
Contact Nick Penny or Simon Preece
Market in Minutes: UK Regional Office Investment Market Watch
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