The Rise of the Office Owner-Occupier

Owner-occupier acquisitions are becoming an increasingly prominent feature of the UK office market.

For many years, leasing has been the default choice for businesses, but more occupiers are now opting to buy.

Drawing on transactional data, we explore what is driving this shift, and whether it reflects a cyclical opportunity or signals a broader change in occupier behaviour.

A larger share of transactions

To gauge the scale of the shift, we analysed owner-occupier acquisitions as a share of office sales by transaction count, avoiding distortion from a small number of particularly large deals.

The share of office sales by owner-occupiers have increased both in London and elsewhere in the UK. Outside London, the proportion rose from an average of 13.4% in of transactions between 2018 and 2023, rising to 17.8% between 2024 and September 2026; in London, it increased more modestly from 8.5% to 10.6% over the same period (Figure 1).

A shift in occupier behaviour: why now?

Looking at owner-occupier acquisitions as a proportion of total office occupier activity across the country, comprising both acquisitions and leasing transactions, provides a clearer indication of the extent to which organisations are choosing to own rather than lease their premises.

Figure 2 shows that owner-occupier acquisitions have accounted for a varying share of occupier activity over time, peaking at 19.4% in 2012 before falling to around 10% or less between 2017 and 2022. More recently, however, their share has risen steadily, reaching 13.4% in 2025.

Looking at owner-occupier acquisitions as a proportion of total office occupier activity across the country, comprising both acquisitions and leasing transactions, provides a clearer indication of the extent to which organisations are choosing to own rather than lease their premises.

Figure 2 shows that owner-occupier acquisitions have accounted for a varying share of occupier activity over time, peaking at 19.4% in 2012 before falling to around 10% or less between 2017 and 2022. More recently, however, their share has risen steadily, reaching 13.4% in 2025.

The recent upturn has coincided with a sharp correction in office capital values, which now appears to have stabilised at, or close to, the bottom of the market. Alongside continued rental growth, this repricing has improved the relative economics of ownership. For some occupiers, the cost of purchasing an office is now comparable to, and in some cases lower than, the cost of leasing. While organisations acquire buildings for a range of strategic reasons, current pricing has strengthened the financial case for ownership.

This divergence between office rental and capital values is expected to persist, at least over the medium term. Oxford Economics forecasts rental value growth of 11.6% between 2025 and 2030, compared with capital value growth of 7.0%. This outlook should help ownership remain relatively attractive, while also offering the potential for capital appreciation.

More than just a market cycle

The historical relationship suggests that owner-occupation has a cyclical element, becoming more attractive when acquisition opportunities improve relative to leasing. However, the recent increase is also being reinforced by structural changes in occupier behaviour. Falling capital values may have created the opportunity, but a growing emphasis on control, cost certainty and the strategic value of real estate could help sustain demand beyond the current market cycle.

This adds to the broader reassessment of the role of real estate on the corporate balance sheet. An owned office is not just being considered as a place to occupy, but a tangible asset that can provide future financial and operational flexibility through refinancing, redevelopment, the letting of surplus space or an eventual sale.

A broader appetite for ownership

Historically concentrated, owner-occupation has been most prevalent among public sector bodies, educational institutions and charities, reflecting their long-term occupancy needs, access to relatively low-cost funding and desire for operational control.

While these sectors continue to provide a relatively consistent source of demand, the occupier base is broadening. The 50 largest acquisitions by size completed over the past two years span numerous industries (figure 3), suggesting the renewed interest in ownership is driven by a wider shift in occupier preferences rather than demand from any single sector.

Securing the right space

Beyond pricing, there are several other reasons occupiers are purchasing rather than leasing their offices. One key factor is the tight supply of large, headquarters-quality offices in some prime markets. This is particularly evident in central London, where availability and the development pipeline are constrained. Some organisations are therefore choosing to acquire buildings to secure critical premises for the long term, rather than risk future availability constraints.

However, ownership is not always about acquiring completed Grade A space. For some occupiers, purchasing secondary stock and retrofitting it to meet their requirements can offer a more economical route to high-quality accommodation. It can also provide greater control over the specification and timing of improvements, while creating the potential to capture value through refurbishment.

Purchasing secondary stock can also give occupiers greater control over energy efficiency improvements, allowing them to align the building with their sustainability objectives and wider business needs.

The need to ensure accommodation remains aligned with operational requirements is evident even at the highest levels of government. Recent suggestions that 10 Downing Street may no longer be suited to modern working practices reflect a wider trend of occupiers reassessing whether their premises remain fit for purpose. In principle, repurposing such heritage assets could release capital for accommodation better aligned with today's workplace needs.

A tool for talent and culture

As competition for skilled workers intensifies, the workplace is playing an increasingly important role in supporting employee wellbeing and helping organisations attract and retain talent.

This role is likely to become more significant as AI takes on a greater share of routine and individual tasks, increasing the value of the office as a place for collaboration, knowledge sharing and creative problem-solving.

Ownership gives occupiers greater freedom to create this environment around their own culture and values. By shaping the layout, facilities and design around how their people work, businesses can support wellbeing and collaboration and adapt the space as needs evolve without being constrained by a landlord.

Greater certainty and long-term control

Following several years of refining their hybrid-working strategies, many businesses now have a clearer understanding of their long-term office requirements, including future headcount, the amount of space needed and the locations that best support their operations. This greater certainty gives them the confidence to make a long-term commitment to ownership and invest in premises that can be adapted as their operational needs evolve.

Where uncertainty remains, or an occupier is planning for future growth, acquiring a larger building can still provide flexibility, as surplus space can be let to other businesses until it is required.

For some organisations, the rationale is even more compelling when the opportunity arises to acquire their existing premises. Purchasing an already occupied building can eliminate lease expiry risk, reduce exposure to future rent reviews and avoid potentially significant dilapidations liabilities. It also allows occupiers to retain a location that is established within the business, while gaining long-term certainty over critical operational asset.

The advantages of owner-occupation are becoming increasingly clear. However, it is unlikely to be the right solution for every occupier. The principal benefits and risks are summarised below.

Current market conditions have clearly accelerated owner-occupier activity, but the shift extends beyond the current cycle. Greater clarity over long-term space requirements, the strategic importance of workplace quality and a desire for greater control are all strengthening the case for ownership.

Even as values recover and the advantage over leasing narrows, the cyclical impetus may fade. However, the underlying drivers are likely to persist and remain attractive to well-capitalised occupiers seeking long-term certainty and the opportunity to build value.

The result may be a more diverse and structurally significant owner-occupier market than in recent years. What began as a response to falling values could therefore become part of a broader reassessment of the role of real estate on the corporate balance sheet, with some occupiers increasingly viewing their offices not simply as a cost, but as a strategic asset.