UK commercial property: what Q3 tells us

As we move through an uncertain economic environment, the UK commercial property market continues to demonstrate varying levels of resilience across sectors. While economic growth remains subdued and financing costs are higher than many have become accustomed to, investor focus remains firmly on assets offering secure income, in locations with strong occupier demand and robust underlying fundamentals.

In our Q3 update on commercial market conditions, we explore the key trends influencing investment and occupational markets, highlight the sectors attracting the greatest interest, and consider the factors likely to shape performance over the coming months. 

• Occupier demand remained strong across the City and West End, driven by technology, AI and financial services businesses
• A shortage of prime space continues to push rents higher, with new benchmark rents being set across core London markets
• The flight to quality remains a defining trend, with fitted, best-in-class offices attracting the strongest demand

• Sales volumes remain ahead of last year
• Quality stock continues to attract strong competition, particularly where secure income and growth potential were clear
• Higher rates are putting pressure on pricing, making realistic pricing and asset quality increasingly important to buyers