News & Alerts

Rightmove's Commercial Insights Tracker for Q1 2026 reveals a 3% drop in office leasing demand compared to the previous year, reflecting increased caution in the market. Supply, however, rose by 7% in the office sector.

The UK commercial property market experienced a steady start to 2026, with transaction volumes softening year-on-year but avoiding sharp corrections. Planning activity, particularly large-scale applications, increased by 15% in January compared to the previous year.

A report warns that changes in business rates assessment could impose an annual £600 million burden on the UK's flexible workspace sector, potentially leading to 150,000 workers returning to home offices and a £260 million loss in local high street spending.

Workspace Group Plc forecasts a "substantial" profit decline due to lower rents and higher costs, prompting a reduction in its dividend. The company is investing to reposition itself as the budget landlord of choice for London startups and small businesses.

Workspace Group Plc anticipates a "substantial" profit decrease for fiscal 2027 due to lower rents and increased costs, leading to a 13% drop in shares to 324.80 pence. The company is investing to become the preferred provider for London startups and small businesses.

In Q4 2025, London's flexible office market saw managed offices commanding a 40% premium over serviced offices, indicating a structural realignment in the sector. Headline desk rates across Greater London fell 3% quarter-on-quarter to £610.

In January 2026, flexible workspace activity in the UK increased by 25% year-over-year, with over 130 transactions totaling approximately 35,300 square meters. Notable deals include an investment bank securing 4,200 square meters at WeWork EC3 in London's financial district and a technology company leasing 640 square meters at Fora in the West End.

Despite uncertainties from the November 2025 Budget, demand for UK commercial real estate remained positive in Q4 2025. Leasing demand for industrial properties increased by 11% year-over-year, followed by offices (2%) and leisure (1%).

Despite a slower market, Workspace Group reported that third-quarter trading remained in line with expectations. Operational improvements contributed to the increase in lettings and occupancy rates.

Workspace Group announced a 0.9% rise in like-for-like occupancy, reaching 81.2% in the three months ending December 2025. The company secured 322 lettings with a total rental value of £10.2 million, up from 273 lettings and £6 million in the same period the previous year.

Knight Frank's Active Capital survey reveals that global institutions plan to invest $144 billion into commercial real estate in 2026. Offices are re-emerging as the top asset class, with over half of investors targeting retail assets.

Knight Frank reports that global institutions plan to invest $144 billion into commercial real estate in 2026, with the UK and Germany being top destinations for capital. Offices are expected to be the most invested asset class, followed by retail.

Capital Economics forecasts that UK commercial property returns will reach just over 8% in 2026, marking the best total return since 2021. This projection is based on stable yields and expected rental growth, with retail properties anticipated to outperform.

Knight Frank's latest Retail Investment Update reveals that the retail property sector consolidated its position as the best-performing property asset class in 2025 in the UK, with a total return of 9.6%. This trend is expected to continue into 2026 despite challenging macroeconomic conditions.

Savills forecasts a 10% increase in UK commercial real estate volumes in 2026, projecting £55 billion in transactions. Offices are expected to remain the top asset class, with a focus on income generation.

CBRE projects that London's flexible office market will grow from 12% to 20% of the capital's total office space by 2030, reaching 50 million square feet. This growth is driven by increased occupier demand and landlord participation.

New lending for UK commercial real estate surged by 33% in the first half of 2025, reaching £22.3 billion. This uptick is driven by banks' increased willingness to lend and competitive loan terms.

Research from Bayes Business School found that new lending for UK commercial real estate increased by 33% in the first half of 2025 compared to the previous year, totaling £22.3 billion. Office and logistics assets saw the most interest, followed by student housing and residential property.

The UK commercial property market is exhibiting early signs of recovery, with prime office rents in Central London projected to rise nearly 5%. However, the increase in National Insurance contributions is creating additional financial pressure on occupiers.

The Royal Institution of Chartered Surveyors (RICS) forecasts a significant increase in prime office rents in Central London, with expectations of a nearly 5% rise over the next year. This growth is attributed to sustained demand and limited supply in the area.

An 'office-curious' investment trend is expected to drive UK commercial real estate transaction volumes to £53 billion in 2025, a 5% increase from the previous year. This reflects renewed interest in office spaces amid evolving market dynamics.

A report by Spaces to Places highlights a growing polarization in the UK flexible office market, with a shift towards premium, hospitality-driven operators and value-focused, functionality-driven providers. The premium segment now represents 20% of total supply.

According to BNP Paribas Real Estate, UK commercial real estate investment volumes reached £50 billion in 2024, a 23% increase from £41 billion in 2023. Retail investment activity rose by a third to almost £9.1 billion, marking the sector's strongest performance since 2021.

Investment volumes in the UK commercial real estate sector increased by 23% in 2024, totaling £50 billion. The retail sector led this growth, with a 33% rise, marking the strongest performance since 2021.

According to BNP Paribas Real Estate, UK commercial real estate investment volumes reached £50 billion in 2024, a 23% increase from £41 billion in 2023. Retail investment activity rose by a third to almost £9.1 billion, marking the biggest year for the sector since 2021.

A survey commissioned by infinitSpace indicates that UK office landlords expect a 54% rise in demand for flexible workspaces by 2030. Currently, 36% of office space is dedicated to flexible or coworking uses.