The UK commercial property market has recalibrated and is primed for a generational shift in wealth

After years of political turbulence, interest rate shocks, and shifting investor sentiment, the UK commercial property market is settling into a new rhythm. While depth and volume remain subdued, activity is steady and increasingly grounded in realism. Buyers are active, sellers more pragmatic, and transactions are being driven by purpose rather than speculation.

Beyond boom and bust

Property markets have long been shaped by two dominant forces: opportunity and fear. Right now, the prevailing mood is neither. Instead, the market is being defined by discipline, strategy, and a growing acceptance of changed conditions.

This is no bad thing. Sellers who need to transact are doing so—particularly in auctions, where speed and transparency still deliver. Buyers are more focused than ever: often value-led, angle-driven, or seeking income with upside. For those who know what they want and how to buy, this is fertile ground.

Realism is prevailing, and sellers are coming to terms with new valuations. The emotional overhang - the belief that an asset should still command its pre-2022 price - is fading.

Valuations lag the market, but recent sales, especially from institutional and corporate vendors, are building a clearer evidence base. The gap between what buyers will pay and what sellers hope to achieve is narrowing. As more sellers accept this new pricing reality, the market continues to stabilise.

Into this environment - one in which, while interest rates remain a key variable, commercial property continues to be a compelling hedge against inflation, and most vendors are in no rush - we’re beginning to see what could be one of the most significant shifts in the 21st century economy.

That is, a generational transfer of wealth which - in one form or another - has the potential to really move the UK property market.

The generational shift reshaping supply

One of the most significant yet under-discussed forces in today’s market is generational wealth transfer. Baby boomers and others who built commercial property portfolios over decades are beginning to pass them on. However, their children and grandchildren aren’t always inclined to become landlords, nor are they emotionally tied to bricks and mortar in the way older generations have been.

While this is already playing out in our auctions, we’re also seeing more probate-motivated disposals. These sellers tend to be more pragmatic and less anchored to legacy pricing. As this trend accelerates, it’s likely to bring more well-located, sensibly priced stock to the market.

A new normal in which smart engagement wins

Recognising that this is, in fact, our new normal - no return to free money, heightened political and economic volatility, generational differences in investment priorities, and the same old need to transact and grow - how should market players engage?

For sellers: engage early and realistically. If you’re holding commercial property and unsure whether to sell, the best advice is to engage early and begin weighing your options. Waiting for the “perfect” moment means there’s a good chance you’ll miss it.

What drives value has evolved. Location still matters, but so do lease length, tenant profile, planning potential and income structure. A short lease isn’t necessarily a weakness. A secondary location doesn’t always mean a secondary return. The key is to get advice that reflects today’s reality, from trusted partners who have seen these cycles before.

For buyers: clarity and discipline matter. Buyers today tend to fall into two camps: those seeking long-term income and those with the appetite to add value. Both approaches are valid, but clarity is essential. Know your strategy, understand your ceiling and be clear on how you’ll create or protect value over time.

Whether you’re buying with a pension mindset or a development play in mind, one rule holds true: you make your money when you buy. In a recalibrated market, there is real value to be found - particularly in assets others may overlook.

A market that rewards experience

This is no longer a market shaped solely by what’s happening on the ground. The bond market, domestic and geopolitical instability, tax and economic policies all now exert real, day-to-day influence.

It’s a more complex, interlinked, and sensitive environment than it was five or ten years ago. That’s why experience and a real understanding of the market matter. It helps you see past the headlines and gives perspective when others hesitate. It’s also why our clients increasingly value the advice we give - because it is not only informed but independent, helping them make sense of a market that still has plenty to offer, even if it no longer shouts about it.

This isn’t a market of easy wins, but it certainly isn’t broken either. For those with a clear plan and the right guidance, the opportunities are there. You just have to know where - and how - to look for them.

This article was first published in BE News on 12th September 2025, to view the article click here