{"id":1179,"date":"2025-04-25T10:41:28","date_gmt":"2025-04-25T09:41:28","guid":{"rendered":"https:\/\/www.rightmove.co.uk\/commercial-property\/news\/?p=1179"},"modified":"2025-04-25T10:41:29","modified_gmt":"2025-04-25T09:41:29","slug":"q1-2025-tracker","status":"publish","type":"post","link":"https:\/\/www.rightmove.co.uk\/commercial-property\/news\/q1-2025-tracker\/","title":{"rendered":"Q1 2025 Tracker"},"content":{"rendered":"\n

<\/p>\n\n\n\n

    \n
  1. Key quarterly data<\/a><\/li>\n\n\n\n
  2. Q1 2025 overview<\/a><\/li>\n\n\n\n
  3. Experts’ views<\/a><\/li>\n\n\n\n
  4. Leasing trends<\/a><\/li>\n\n\n\n
  5. Investment trends<\/a><\/li>\n\n\n\n
  6. About the Commercial Insights Tracker<\/a><\/li>\n<\/ol>\n\n\n

    Key quarterly data<\/h2>\n\n\n

    Leasing<\/h3>\n\n\n\n

    <\/p>\n\n\n\n

    \"This<\/figure>\n\n\n\n

    Investment<\/h3>\n\n\n\n

    <\/p>\n\n\n\n

    \"\"<\/figure>\n\n\n

    Q1 2025 overview<\/h2>\n\n\n

    Highest demand to lease office space since pre-pandemic<\/h3>\n\n\n\n

    <\/p>\n\n\n\n

    The latest insights from the UK\u2019s number one commercial property website Rightmove, reveals that the number of unique enquiries to lease office space is at its highest point since pre-pandemic, as businesses look for spaces that meet modern requirements.<\/p>\n\n\n\n

    Demand to lease office space is 19% higher than the same period a year ago and comes at a time when many businesses are continuing to consider how often employees should be in an office together.<\/p>\n\n\n\n

    Rightmove\u2019s Quarterly Commercial Insights Tracker analyses millions of data points from the largest and most engaged commercial audience in the UK, to track supply and demand over time. Demand is measured by enquiries to commercial agents about listings for lease, or to invest in via Rightmove.<\/p>\n\n\n\n

    A snap poll in Rightmove\u2019s research panel, Living Room, also shed some light on what could attract UK employees to spend more time in an office.<\/p>\n\n\n\n

    Amongst more than 350 office workers, a shorter commute (51%), free or discounted food (39%), greater flexibility with working hours (34%) and better facilities (29%) were some of the top priorities employees said would make them want to go to the office more.<\/p>\n\n\n\n

    The things that people found most frustrating about working in an office were the commute (61%), the office temperature (27%) and poor office facilities (24%).<\/p>\n\n\n\n

    Industry experts suggest a desire from employees to work in top class office spaces near good transport routes, particularly the Elizabeth Line, is driving business decision making.<\/p>\n\n\n\n

    In other trends, demand to invest in commercial property of all types continues to grow as the interest rate environment becomes more favourable. Demand to invest in commercial property is now 19% ahead of Q1 2024.<\/p>\n\n\n\n

    This quarter, demand to invest in offices has outpaced the industrial sector, which had been leading the way. Demand to invest in the office sector is up by 75% versus the same period last year (a low base), compared with 70% for industrial.<\/p>\n\n\n\n

    In the leasing sector, demand to lease leisure and hospitality spaces is up by 37% versus the same period last year. Demand to lease industrial space is also up 37% as the growth of e-commerce continues to fuel demand for warehouses.<\/p>\n\n\n\n

    \u201c<\/em>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.\u201d<\/em><\/p>\n\n\n\n

    Andy Miles, Rightmove\u2019s MD of Commercial Real Estate<\/strong><\/p>\n\n\n

    Experts’ views<\/h2>\n\n\n

    \u201cPost-pandemic, modern offices have become lifestyle spaces rather than just somewhere that people spend the hours of nine to five. Businesses want to be near good transport links, particularly key Elizabeth Line stations, and in a building which has the kind of amenities which excites top talent.<\/em><\/p>\n\n\n\n

    \u201cThe higher-end of the market, the best-in-class office buildings, are doing well and seeing strong demand.<\/em><\/p>\n\n\n\n

    \u201cThere is also greater demand from medium-sized businesses for offices that are fully furnished and ready-to-go, rather than needing the time and upfront costs for businesses to fit themselves. Landlords have responded to this by offering turnkey solutions across their portfolios. It\u2019s becoming much more par for the course.\u201d<\/em><\/p>\n\n\n\n

    Stephen Page, Partner at Anton Page in London<\/strong><\/p>\n\n\n\n

    \u201cThe UK industrial and logistics sector remained active in Q1 2025, preliminary data points to 8.1 million sq ft of occupier take-up \u2013 a decrease on the previous quarter, although this comparison is skewed due to a recent upward revision of Q4 2024 figures. Vacancy rates remain stable quarter on quarter and are expected to decline as the year progresses.<\/em><\/p>\n\n\n\n

    \u201cAlthough the occupier market lacked the presence of \u2018mega\u2019 deals, the pipeline remains promising, with several sizeable assets under offer and expected to complete in Q2. Moreover, there are multiple significant requirements currently active in the market, indicating strong latent demand.<\/em><\/p>\n\n\n\n

    \u201cRegionally, Yorkshire was a standout performer after a relatively subdued 2024. The region saw elevated levels of occupier activity, <\/em>fuelled<\/em> by its strong connectivity and growing appeal to logistics operators due to the <\/em>favourable<\/em> rents compared with more prominent locations in the Midlands. Overall, Q1 2025 reflects a market that is steady and resilient, with signs of increasing momentum in both leasing and investment activity as the year unfolds.\u201d<\/em><\/p>\n\n\n\n

    Claire Williams, Head of UK & European Industrial Research at Knight Frank<\/strong><\/p>\n\n\n\n

    Leasing trends<\/h2>\n\n\n\n

    Industrial demand<\/h3>\n\n\n\n

    <\/p>\n\n\n\n

    \"\"<\/figure>\n\n\n\n

    <\/p>\n\n\n\n

    <\/p>\n\n\n\n

    Leisure demand<\/h3>\n\n\n\n

    <\/p>\n\n\n\n

    \"\"<\/figure>\n\n\n\n

    <\/p>\n\n\n\n

    <\/p>\n\n\n\n

    Office demand<\/h3>\n\n\n\n

    <\/p>\n\n\n\n

    \"\"<\/figure>\n\n\n\n

    <\/p>\n\n\n\n

    <\/p>\n\n\n\n

    Retail demand<\/h3>\n\n\n\n

    <\/p>\n\n\n\n

    \"\"<\/figure>\n\n\n\n

    <\/p>\n\n\n\n

    <\/p>\n\n\n\n

    London office demand<\/h3>\n\n\n\n

    <\/p>\n\n\n\n

    \"\"<\/figure>\n\n\n\n

    <\/p>\n\n\n\n

    Investment trends<\/h2>\n\n\n\n

    Investment demand<\/h3>\n\n\n\n

    <\/p>\n\n\n\n

    \"\"<\/figure>\n\n\n\n

    <\/p>\n\n\n\n

    About the Commercial Insights Tracker<\/h2>\n\n\n\n

    \u2022All data compares 1st<\/sup> January 2025 \u2013 31st<\/sup> March 2025 with the same period a year ago<\/p>\n\n\n\n

    \u2022Demand definition: all enquiries to commercial agents about listings for lease, or to invest in via Rightmove<\/p>\n\n\n\n

    \u2022Supply definition: the number of available commercial real estate listings for lease or investment on Rightmove, adjusted to strip out the effect of any growth in our partner base<\/p>\n\n\n\n

    \u2022Colour key: Teal colours represent areas with more growth in demand or available listings than a year ago, while red shaded areas represent less demand or available listings than a year ago<\/p>\n\n\n\n

    \u2022We acknowledge that some market participants will look at demand and supply differently, for example as an aggregate of active searches by tenant representatives, measured in square feet. We aim to provide an alternative lens that makes the best use of our unique dataset.<\/p>\n\n\n\n

    <\/p>\n","protected":false},"excerpt":{"rendered":"

    Rightmove’s latest commercial data shows high-level trends in the commercial market sectors and reveals the highest demand for office space since pre-pandemic.<\/p>\n","protected":false,"text":"Rightmove's latest commercial data shows high-level trends in the commercial market sectors and reveals the highest demand for office space since pre-pandemic."},"author":9,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[9],"tags":[41,23,33,25,29,35,31,19,21],"article_type":[4],"class_list":["post-1179","post","type-post","status-publish","format-standard","hentry","category-tracker","tag-buying-commercial-property","tag-commercial-property","tag-industrial","tag-insights","tag-investment","tag-leisure","tag-office","tag-real-estate","tag-uk-market-trends","type-article"],"acf":[],"yoast_head":"\nQ1 2025 Tracker | Commercial Property News<\/title>\n<meta name=\"robots\" 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