
Commercial Property Review – January 2026
Office demand stays strong — investors favour offices, though tenants are more selective on location Retail outperformed in 2025 — strong occupier markets and highest total returns,

Office demand stays strong — investors favour offices, though tenants are more selective on location Retail outperformed in 2025 — strong occupier markets and highest total returns,

Business rate reforms aim to support smaller retail assets but may unintentionally impact high-value offices and logistics buildings Regional office rents reached record growth as ESG-compliant, prime stock remains scarce across

Retail investor demand continues rising sharply, supported by reduced interest rates, tighter supply and greater vendor realism in valuations M&S strengthens its UK logistics network with a major pre-let hub

Prime yields remain stable at 5.9%, signalling resilience and predictability in a cautious investment environment Hotel investment surged 28% year-on-year, driven by strong single-asset deals

City investment volumes reached £2bn by July, 33% below average, but deal sizes are notably larger The outlook for H2 2025 is brighter due to

London’s data centre demand is set to hit record highs in 2025, driven by hyperscalers and AI providers Retail property investment rebounded strongly in Q2,

City of London investment volumes are rising, with May hitting the highest deal count so far in 2025 Owner-occupier demand is increasing as mortgage costs

City of London investment triples year-on-year, led by State Street’s £382m office acquisition The retail sector rebounded strongly in April, but inflation and falling confidence

Q1 2025 West End investments hit £1.71bn, driven by three major transactions despite fewer deals UK commercial property demand is rebounding, with offices and industrials

In central London, twice as many businesses upsized than downsized last year, with one-third of London lettings coming from new entrants Premium pricing, limited development
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© Copyright 2024 Home & Finance. All rights reserved. Website by TOMD.
© Copyright 2024 Home & Finance. All rights reserved.
Website by TOMD.
Home & Finance is registered in England and Wales.Registered office, 14 New Market St, Ulverston, Cumbria, LA12 7LN.
Authorised and regulated by the Financial Conduct Authority. Home & Finance General Ltd is entered on the Financial Services Register https://register.fca.org.uk/ under reference 300760 for General Insurance Products.
Authorised and regulated by the Financial Conduct Authority. Home & Finance IFA Ltd is entered on the Financial Services Register https://register.fca.org.uk/ under reference 135250 for Investment & Mortgage business.
A summary of our internal complaints handling procedures for the reasonable and prompt handling of complaints is available on request and if you cannot settle your complaint with us, you may be entitled to refer it to the Financial Ombudsman Service at www.financial-ombudsman.org.uk or by contacting them on 0800 0234 567.
© Copyright 2024 Home & Finance. All rights reserved. Website by TOMD.