This report is based on a survey of Propertymark commercial agents reviewing the second quarter of 2025. It is further addended with an analysis conducted by Propertymark of key statistics relevant to the commercial property market.
Economic outlook
The Bank of England base rate stood at 4.25% by the end of June 2025. This stood lower than the previous year.
Rent levels
Members continue to be optimistic about rents in the Land and Yards Sector and the Leisure Sector. However, sentiment in the Pubs and Restaurants Sector remains negative, and agents remain cautious about rents in the Office Sector.
Investment yields
Expectations for investment yields in the coming twelve months vary by sector, with swings in sentiment visible within the Leisure Sector and a further trend downwards for the Lands and Yards Sector. However, this quarter has brought a steady confidence within the Office Sector and a surprise uplift in confidence when looking at the Pubs and Restaurants Sector.
Rent reviews
62% of our commercial members reported that rents were increasing, while 31% reported that rents were staying the same, and 0% said rents were decreasing following review.
