Offices, warehouses, factories, laboratories, logistics hubs and data centres provide the physical infrastructure businesses need to operate, expand and invest.

Recent HMRC figures suggest the market is showing signs of stability, but not yet the level of momentum needed to support the Government’s ambitions for stronger economic growth. While commercial property transactions have risen gradually over recent months, the pace of recovery remains modest.

According to HMRC, there were 10,300 seasonally adjusted commercial property transactions in June 2026, up from 10,080 in May and 9,960 in April. Although encouraging, the figures point to incremental improvement rather than a significant revival.

Heather Powell, Partner at Blick Rothenberg, said:

To deliver growth the government needs a flourishing property sector that is providing the platform which businesses need to grow

This is evidenced in HMRC’s latest statistics. The number of seasonally adjusted commercial property transactions in June 2026 was 10,300, in May 2026 it was 10,080, and 9,960 in April 2026 – whilst the numbers are creeping up there is no evidence of dramatic growth

Why commercial property matters beyond real estate

A healthy commercial property market supports investment across virtually every sector of the economy. Businesses require modern, well-located premises to improve productivity, attract talent and expand operations. Manufacturers need industrial space, retailers depend on distribution networks, and technology companies increasingly require specialist facilities such as data centres.

When investment in commercial property slows, it can limit business expansion, reduce construction activity and constrain wider economic growth. Conversely, a well-functioning property market can stimulate private investment, create jobs and improve the UK’s competitiveness.

As businesses continue to adapt to changing workplace expectations, sustainability requirements and advances in technology, demand is also shifting towards higher-quality, energy-efficient buildings that can meet future operational needs.

Property is the essential infrastructure for UK industry – data centres, factories, warehouses, distribution centres and offices provide the platform from which the UK businesses operate. One key priority for the new cabinet must be to re-invigorate this sector, thus giving UK PLC the resources it needs to deliver on the ‘Growth’ agenda.

Addressing the supply challenge

While occupier demand remains resilient in many parts of the market, the availability of high-quality commercial space continues to lag behind.

This imbalance is particularly evident in London’s office market, where businesses are increasingly seeking modern, sustainable workplaces but developers remain cautious about committing to new speculative projects. The result is constrained supply at a time when demand for premium space continues.

Jules Hind, a Partner at Farebrother real estate advisors said:

The missing ingredient in the Central London office market is still a deep future supply of high-quality refurbishments and developments. There have been a limited number of speculative starts on schemes and those investors will reap the reward of early commitment from occupiers seeking to secure best in class workspace

Jules added:

Demand from occupiers remains high, but supply remains low. To address this, the Government needs to do more to encourage builders to build and property investors to invest. Making planning easier, encouraging regeneration and improving public transport at a local and national level will make building and investing in commercial properties in London more viable

Planning reform, investment incentives and infrastructure improvements all have the potential to unlock new development and encourage greater confidence among developers and investors. Creating the right policy environment could help bring forward projects that support both regional regeneration and national economic growth.

Looking ahead

The gradual increase in commercial property transactions is a positive signal, but it is not yet enough to suggest a sustained recovery. If the Government is serious about delivering long-term growth, commercial property should be recognised as a key economic enabler rather than simply another asset class.

Policies that encourage investment, accelerate development and improve infrastructure could help create the business environments needed for companies to grow, innovate and create jobs. For businesses, developers and investors alike, confidence in the commercial property market will be an important indicator of the UK’s wider economic prospects.

What you should consider next

Whether you are a business owner, investor or developer, now is a good time to assess how changes in the commercial property market could affect your plans.

• Review whether your current property strategy supports your future growth ambitions
• Monitor Government announcements on planning reform, regeneration initiatives and investment incentives, as these could influence development opportunities and investment decisions
• Consider how changing occupier demand, particularly for high-quality, sustainable buildings, may affect your property requirements or investment portfolio
• Seek professional advice before making significant property or investment decisions to understand the tax, commercial and financial implications in a changing market

A stronger commercial property sector has the potential to benefit the wider economy. Businesses that stay informed and plan ahead will be best placed to respond as policy and market conditions evolve.

Would you like to know more?

If you’d like to discuss the above, please speak to your usual Blick Rothenberg contact or Heather Powell using the form below.