Britain's major regional office markets delivered strong performance in the first half of 2025. The Big Six cities of Birmingham, Bristol, Edinburgh, Glasgow, Leeds and Manchester recorded combined take-up of 1.73 million square feet, reports Savills.
Tariff concerns and trade tensions failed to dent momentum in the office occupier market in the second quarter of 2025 as national take-up surged to its highest level since the pandemic began.
The availability rate of logistics warehouses of 50,000 square feet and above rose in eight of the UK mainland’s 11 regions in the second quarter of 2025 compared to the previous quarter, and 10 regions in the year to June.
Lancashire industrial investment reached an all-time high during the second quarter of 2025, as a reversionary opportunity, a redevelopment project and the largest-ever transaction in the market changed hands.
Vacancy rates for retail space in the London boroughs included in the 2023 ultra-low emission zone expansion have risen sharply over the last three years compared with the boroughs immediately beyond the expanded area.
The UK economy unexpectedly shrank in May, as output in the production and construction sectors declined. Many analysts had anticipated a modest 0.1% growth for the month rather than the 0.1% contraction that materialised.
Heathrow has been one of London’s best-performing industrial submarkets in recent years. However, while warehouse vacancies remain low around the airport, they are rising, with a dearth of leasing and investment activity recently amid rising trade and tariff uncertainty.
The amount of vacant retail space in central Oxford has risen to its highest level for at least 15 years, as the rise of online shopping, stubbornly low consumer confidence and the introduction of traffic restrictions have led to falling demand for physical space.
Commercial real estate professionals expect the sweeping $4.5 trillion federal tax and funding bill signed into law by President Donald Trump to have some positive effects on the property industry.
Birmingham has witnessed some substantial office lettings over the past 12 months. While occupier sentiment has slowed recently, lettings on the best quality space continue to take centre stage.
The Portsmouth Property Association gathered at the newly refurbished auditorium at Lakeside North Harbour for its annual conference last week, with over 70 delegates sharing their insights and forecasts for the year ahead.
The three strongest-performing Manchester submarkets for industrial investment over the past five years have maintained the top spots over the past 12 months.
Hotels in the City submarket have outperformed the wider London market over the past 12 months. It is also one of the two submarkets that achieved year-on-year revenue per available room growth in year-to-May 2025, out of 17 submarkets in total.
Office market conditions in Herefordshire & Worcestershire have stabilised in recent quarters, in line with higher office attendance and firms having more clarity over their space needs several years post-pandemic.
Hotel supply in the Manchester Centre submarket, encompassing the city centre, has been on an upward trend in the past decade. Twelve-month supply has grown at a compound annual growth rate of approximately 5% between 2015 and 2025, well ahead of the national average of 1%.
Office space in the Old Town submarket has a higher probability of leasing than elsewhere in central Edinburgh, over both six- and 12-month periods, according to CoStar estimates.
Retail market dynamics on Glasgow’s Argyle Street are improving, helped by rising footfall, a stronger tenant mix and the promise of public realm enhancements from the city council’s Avenues project.
National retail sales volumes fell at their fastest pace in 17 months in May, but there are reasons to believe that the retail sector’s recovery will continue after a difficult 2024.