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The second quarter of 2025 shows the commercial property sector is balancing short-term challenges with long-term opportunities, as agents report shifting confidence across sectors.
Reforms announced are going to make it easier and cheaper for empty commercial units to be turned into hospitality venues will be introduced to support efforts to boost footfall and revitalise town centres.
Upward-only rent reviews will be outlawed in new leases across England and Wales under the English Devolution and Community Empowerment Bill. Concerns have been raised by the sector about how this move could affect property values and investor confidence. Plus, a shift of this magnitude requires careful implementation to prevent unintended consequences for future development and commercial supply.
Q1 reveals a resilient commercial property sector navigating economic uncertainty with cautious optimism. While inflation remains above target and lending challenges persist, strong confidence continues in the Industrial and Class E sectors.