D2 Real Estate has published its Channel Islands Office Market Review 2026.
The report highlights strong occupier demand, constrained supply and continued rental growth across Jersey and Guernsey.
Now in its tenth edition, the annual report focuses on the evolving dynamics of the islands’ office markets, where leasing activity remains robust despite a subdued investment environment.
In Jersey, prime office vacancy stands at just 1.5%, compared to an overall vacancy rate of 5.1%. Office take up reached 130,000 sq ft in 2025, with approximately 210,000 sq ft of live enquiries currently in the market. Prime headline rents have reached £55 per sq ft, while refurbished second generation buildings are now achieving in excess of £40 per sq ft, reflecting sustained competition for high quality space.
Guernsey has also seen steady take up, totalling 70,000 sq ft in 2025, with prime vacancy at 2.6%. Demand remains focused on premium accommodation and flexible office solutions, although the development pipeline is limited.
The report notes that supply constraints, rising build costs and extended lead in times for refurbishment and new development are shaping occupier behaviour, with businesses required to plan well in advance to secure suitable space.
While investment transactions in the Channel Islands have been relatively limited since mid 2025, improving lending conditions and anticipated interest rate reductions may support renewed activity in the year ahead.
Phil Dawes, Managing Director of D2 Real Estate, said: “Paradoxically, the UK and Channel Islands’ occupational markets are booming, creating the widest dislocation between leasing and investment activity in almost 30 years.”
