The East Midlands office market in 2025: A year of steady rebalancing and quality-driven demand

As we moved through 2025, the East Midlands office market entered a period of stability that stands in contrast to the turbulence of recent years. What we are seeing across Nottingham, Leicester and Derby is not a sudden resurgence, but a steady and rational rebalancing of demand, with occupiers making more considered and longer term decisions about the space they commit to. The story of the last 12 months can be summarised in three words: quality, purpose and sustainability.

Occupiers continue to recalibrate their workplace strategies, and hybrid working has now settled into a predictable rhythm of two to four days per week. This has helped remove much of the uncertainty that previously held businesses back. Instead of asking whether they need an office at all, organisations are now asking what kind of office will genuinely support productivity, culture and collaboration. That shift in mindset has been transformative.

The result has been a pronounced flight to quality across the region. Demand is strongest for modern, flexible and amenity rich offices that offer staff a compelling reason to come together. Features that might once have been considered add ons such as enhanced air quality, breakout zones, shared meeting suites, secure bike storage, EV charging and wellbeing focused design are now at the forefront of many search requirements.

At the same time, occupiers are rightsizing with greater precision than ever before. Rather than chasing larger footprints, many businesses are choosing better designed space that reflects the way they now operate. High quality buildings are letting well, even achieving modest rental growth in some cases. Meanwhile, older, non refurbished stock continues to struggle and the gap between the best and the rest is widening.

Sustainability has become a defining theme of 2025. ESG is no longer a corporate buzzword. It is informing real and measurable decisions. Occupiers increasingly recognise that greener and more energy efficient space leads to lower running costs, improved staff retention and meaningful reputational benefit. Likewise, landlords with older assets are accelerating refurbishment programmes to ensure their buildings remain viable in a market where EPC and environmental compliance cannot be ignored.

Refurbishment is not just a trend. It is becoming the backbone of the region’s office pipeline. With limited new build development coming forward, repositioning existing buildings is essential for meeting demand. The most successful schemes are those that combine sustainable upgrades with a strong design ethos that aligns with modern working culture: light, open, tech enabled and adaptable.

Looking ahead to 2026, my outlook is one of cautious optimism. The fundamentals remain strong. The East Midlands is increasingly seen as a strategically important location for businesses wanting to operate at scale while maintaining cost efficiency. We expect continued demand for high quality space, further investment into retrofitting and occupiers continuing to refine their use of the office.

However, the divergence in performance between prime and secondary space will only become more pronounced. Those buildings that embrace ESG, design quality and flexibility will remain competitive. Those that do not will have to work much harder for attention in an increasingly discerning market.

In short, confidence is returning, but it is a confidence rooted in selectivity. The East Midlands office market is evolving and success will belong to those who adapt with it.