The UK’s commercial property market is showing sharply contrasting performances across key sectors at the midpoint of 2025, according to CBRE’s latest UK Real Estate Market Outlook Mid-Year Review. While the office market is benefiting from strong demand for premium office space and renewed overseas investment, the life sciences sector is seeing steady growth in funding but slower movement in transactions.

At the same time, the data centre market is entering a period of exceptional expansion, with record levels of take up forecast and new developments extending beyond traditional hubs. The findings highlight how underlying supply constraints, shifting occupier needs and targeted government support are reshaping investment priorities across the country.

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Commercial property markets in regional UK cities are seeing significant growth as major financial institutions rethink their office strategies to focus on high-value client interactions in London while relocating support functions elsewhere. New research from JLL suggests that financial services firms have accounted for more than 440,000 square feet of inward investment in office space across Glasgow, Leeds, Bristol, Manchester, Edinburgh and Birmingham over the last decade. This is more than the space acquired by manufacturing (238,822 sq. ft) and service industries (224,813 sq. ft), though still behind technology, media and telecoms (TMT) and flexible workspace sectors. (more…)