In a clear sign of momentum building across the commercial property landscape, Rightmove’s latest commercial insights tracker has unveiled a 19% year-on-year rise in demand for office leases—a notable upswing when measured against the same quarter last year.

Industrial and leisure sectors witnessed even steeper climbs, both posting an impressive 37% annual increase in leasing demand, while retail, though more modest, still edged upward by 14%. This growing hunger for space is mirrored by an increase in available stock—albeit uneven across sectors. Office supply has risen by 8%, industrial spaces expanded by 26%, and leisure just nudged forward with a 1% gain. Retail, on the other hand, saw a slight contraction in supply, down by 1%.

Investment activity, meanwhile, is accelerating even faster. Demand for office investments catapulted 75% higher compared to the previous year. Industrial investment demand wasn’t far behind, soaring by 70%. Leisure posted a 14% gain in investment demand, and retail followed with a 26% rise.

On the supply side of investment properties, offices recorded a 13% increase, industrial climbed by 22%, yet the leisure and retail sectors bucked the upward trend, falling 12% and 10% respectively.

Andy Miles, managing director of commercial real estate at Rightmove, underscored a growing divergence in office space preferences: “Modern, well-positioned office space with great amenities and service is being used as an added incentive to attract top talent, to encourage them into city centres more, and is seeing strong demand.
Older, energy-inefficient and less comfortable office spaces are struggling to meet expectations from office workers.”

The narrative of change and recalibration extends further, according to industry voices.

Michael Sears, advisory panel member of Propertymark’s NAEA commercial committee, commented: “The commercial property sector continues to adapt to ensure many business sectors evolve to keep pace with ever-progressing trends and shifts in demand.

“As many towns and cities embark on substantial regeneration projects, there is huge potential in the medium and long term in delivering prolonged growth across many commercial channels and we are seeing a substantial keenness from investors.

“In the office supply sector, 43% of our commercial member agents forecast an increase in supply and continue to report that the current resurgence comes from the lets we are completing; the increasing number of enquiries and the ever-growing requirement lists from brand surveyors and agents both in-house and not.”

From surging industrial interest to the strategic repurposing of workspaces, the market is clearly recalibrating. With investor confidence ramping up and occupiers looking for more than just four walls and a roof, the commercial property sector seems poised to ride the current wave into deeper waters of transformation and opportunity.