
Study Period | 2020 - 2030 |
Base Year For Estimation | 2024 |
Forecast Data Period | 2025 - 2030 |
Market Size (2025) | USD 156.12 Billion |
Market Size (2030) | USD 192.79 Billion |
CAGR (2025 - 2030) | 4.31 % |
Market Concentration | Low |
Major Players![]() *Disclaimer: Major Players sorted in no particular order |
UK Commercial Real Estate Market Analysis
The UK Commercial Real Estate Market size is estimated at USD 156.12 billion in 2025, and is expected to reach USD 192.79 billion by 2030, at a CAGR of 4.31% during the forecast period (2025-2030).
The UK commercial real estate market is experiencing significant transformation driven by changing workplace dynamics and economic pressures. According to Remit Consulting, office occupancy levels have stabilized at approximately 30%, with a three-day workweek emerging as the new standard. This shift is further reinforced by employee preferences, with 69% of staff reporting enjoyment of working from home, while 75% of Generation Z workers would consider alternative employment if required to return to full-time office work. The evolving workplace landscape has prompted organizations to reevaluate their real estate footprint, leading to increased demand for flexible and high-quality spaces that promote collaboration and employee well-being.
Investment patterns in the commercial property market reflect a flight to quality, particularly in prime locations. In Edinburgh, commercial property investment volumes have shown remarkable resilience, with deal activity reaching EUR 596 million in 2023, surpassing the EUR 555 million recorded in 2022. The retail sector has demonstrated particular strength, with investment soaring by nearly 70% to EUR 170 million, marking its strongest performance since 2017. This trend underscores investors' continued confidence in prime assets despite broader market challenges.
Sustainability and ESG considerations have become paramount in shaping the commercial real estate trends. The UK's ambitious goals to reduce greenhouse gas emissions by 68% by 2030 and achieve net-zero by 2050 are driving significant changes in property development and management. The market has witnessed a growing emphasis on BREEAM Outstanding certifications, with developments like Canada Water expected to house the UK's largest collection of BREEAM Outstanding buildings. This focus on sustainability is increasingly influencing investment decisions, with properties lacking strong ESG credentials facing potential value depreciation.
Technology integration and innovation are revolutionizing real estate market trends, particularly in the office sector. The rise of artificial intelligence and other emerging technologies is enhancing the importance of offices as high-quality environments for collaboration and innovation. In the industrial and logistics sector, the integration of smart technologies and sustainable features is becoming standard, with new developments incorporating EV charging infrastructure and energy-efficient systems. According to the Research, Information and Consulting Society (RICS), more than 75% of survey respondents in Q3 2023 predicted continued pressure on corporate cash flows, driving the need for more efficient and technologically advanced commercial spaces that can support productivity while managing operational costs.
UK Commercial Real Estate Market Trends
Growing Demand for Premium Quality Space
The UK commercial real estate market is experiencing a significant shift towards premium quality spaces, driven by occupiers' strategic focus on attracting employees back to physical workplaces in a hybrid working environment. This flight to quality has created intense competition for high-quality buildings, particularly those offering superior amenities and outdoor spaces. The demand has become so robust that 38% of the UK office space is projected to be occupied by 2025, leading to a depleting development pipeline and creating upward pressure on rental rates for premium properties. The trend is further evidenced by the achievement of record headline rents across most UK markets in 2023, with expectations of continued growth in 2024.
The emphasis on quality is particularly visible in new developments and refurbishments, where landlords are incorporating advanced amenities to meet evolving tenant expectations. For instance, properties like the 105 Victoria Street Redevelopment in Westminster, London, valued at USD 1.09 billion, are being designed with a focus on premium specifications and sustainable features. This trend is reinforced by major corporations' willingness to commit to long-term leases in high-quality spaces, as demonstrated by pre-letting activities where buildings like Eden at New Bailey secured significant pre-lets to prominent firms like TLT and BDO, highlighting the strong demand for premium office spaces.
Infrastructure Development and Urban Regeneration
The UK commercial real estate market is being significantly propelled by major infrastructure and urban regeneration projects across key cities. Notable developments include the Crown Round III Offshore Wind Farm Development valued at USD 4.04 billion and the Elephant & Castle Town Centre Phase 2 project worth USD 1.09 billion, which are creating new commercial districts and driving property values in their respective areas. These large-scale developments are not only creating immediate demand for commercial space but are also establishing new business hubs that attract further investment and development opportunities. The transformative nature of these projects is evident in their scope and scale, with many incorporating mixed-use elements that create sustainable communities and business environments.
The momentum in infrastructure development is further supported by strategic projects like the Thorpebury Housing Community in East Midlands and the Blackpool Central Station Mixed-Use Community, valued at USD 652.55 million and USD 351.45 million respectively. These developments are characterized by their comprehensive approach to urban planning, incorporating commercial, retail, and public spaces that enhance the overall appeal of their locations. The strategic positioning of these projects near major transport hubs and their integration with existing urban infrastructure demonstrates a long-term approach to commercial real estate development, creating sustainable value propositions for investors and occupiers alike.
Sustainability and ESG Integration
Environmental, Social, and Governance (ESG) considerations have emerged as a crucial driver in the UK commercial real estate market, with developers and investors increasingly prioritizing sustainable building practices and certifications. The market is witnessing a significant shift towards green building standards, with developments like the Canada Water Masterplan aiming to host the UK's largest collection of BREEAM Outstanding buildings. This focus on sustainability is not merely a regulatory compliance measure but has become a key differentiator in attracting premium tenants and securing long-term asset value. The integration of sustainable features is particularly evident in new office developments, where energy efficiency, carbon neutrality, and wellness features are becoming standard requirements.
The commitment to sustainability is reflected in the substantial investments being made in upgrading existing properties and developing new ones with advanced environmental features. For instance, prime office developments are increasingly incorporating green technologies, sustainable materials, and energy-efficient systems. This trend is further reinforced by tenant demands, with many corporate occupiers having their own ESG targets that influence their real estate decisions. The market has responded with innovations in sustainable construction and operation, leading to the development of properties that not only meet current environmental standards but are also future-proofed against increasingly stringent regulations and changing occupier expectations.
E-commerce and Digital Transformation Impact
The continued evolution of e-commerce and digital transformation is fundamentally reshaping the UK commercial real estate landscape, particularly in the retail and logistics sectors. While online retail penetration has stabilized to pre-pandemic trend levels, it is projected to reach 28% by the end of 2024, driving significant changes in how commercial spaces are utilized and developed. This digital transformation is creating a dual impact: while traditional retail spaces are being reimagined to integrate online and offline experiences, there is a simultaneous surge in demand for modern logistics and distribution facilities to support e-commerce operations. The trend is particularly evident in the development of hybrid retail spaces that combine traditional shopping experiences with digital integration.
The impact of digital transformation extends beyond retail to influence the entire commercial real estate ecosystem. Property developers and managers are increasingly incorporating smart building technologies and digital infrastructure to meet the evolving needs of occupiers. This transformation is evident in the development of tech-enabled office spaces and retail environments that support modern business operations. The trend is also driving innovation in property management and tenant services, with an increasing focus on digital solutions for space utilization, building maintenance, and occupier engagement. This digital evolution is creating new opportunities for property development and investment, particularly in locations that can support both traditional and digital business operations.
Segment Analysis: By Type
Offices Segment in UK Commercial Real Estate Market
The office real estate market continues to dominate the UK commercial real estate market, accounting for approximately 36% of the total market value in 2024. This segment's strong performance is driven by sustained demand for premium office spaces, particularly in major business hubs like London, Manchester, and Birmingham. The market has shown remarkable resilience, with Grade A office vacancies in key cities remaining low, demonstrating strong occupier demand for quality workspace. Cities like Birmingham have registered prime rents above £40 per sq ft, showcasing the segment's robust growth. The flight-to-quality trend remains apparent as businesses seek out desirable workspaces to foster collaboration and enhance team productivity, with many companies focusing on well-located, environmentally sustainable buildings to attract and retain talent in a hybrid working world.

Industrial and Logistics Segment in UK Commercial Real Estate Market
The industrial real estate market is projected to be the fastest-growing sector in the UK commercial real estate market, with an expected growth rate of approximately 6% during 2024-2029. This exceptional growth is being driven by the continued expansion of e-commerce operations, robust occupier demand, and the need for modern, efficient distribution facilities. The sector has demonstrated particular strength in key locations such as the East Midlands, which has captured almost half of the total UK take-up in recent quarters. The development pipeline continues to bring quality stock to the market, with significant speculative developments either recently completed or currently under construction. Despite some regions experiencing persistent pockets of under-supply, particularly for larger units of Grade B and Grade C quality, the sector's growth trajectory remains strong due to increasing demand for last-mile delivery facilities and modern warehousing solutions.
Remaining Segments in UK Commercial Real Estate Market
The retail property market, hospitality, and other segments continue to play vital roles in shaping the UK commercial real estate landscape. The retail sector is undergoing significant transformation with a focus on prime locations and retail warehousing while maintaining its position as a crucial component of urban development. The hospitality segment has shown remarkable recovery with strong performance across UK cities, particularly in premium locations and tourist destinations. The other segments, including schools and recreational areas, are increasingly important in creating mixed-use developments and supporting community infrastructure. These segments collectively contribute to the market's diversity and resilience, with each playing a distinct role in meeting varying commercial space requirements across different regions of the UK.
UK Commercial Real Estate Industry Overview
Top Companies in UK Commercial Real Estate Market
The UK commercial real estate industry features prominent players including Land Securities Group PLC, Segro PLC, British Land, Derwent London, Hammerson, and Brookfield Properties, among others. These companies are increasingly focusing on sustainable development practices and green building certifications to meet evolving market demands and regulatory requirements. Strategic portfolio optimization through asset recycling and redevelopment of existing properties has become a key trend, particularly in prime locations. Companies are also accelerating their digital transformation initiatives, incorporating smart building technologies and advanced property management systems. The market has witnessed a notable shift towards mixed-use developments and flexible workspace solutions, reflecting changing occupier preferences. Major players are strengthening their positions through strategic partnerships and joint ventures, particularly in emerging sub-sectors like logistics and data centers, while maintaining a strong focus on prime office and retail assets in key metropolitan areas.
Fragmented Market with Strong Regional Players
The UK commercial real estate market exhibits a fragmented structure with a mix of domestic and international players actively participating across different property segments. The market features a combination of large-scale property companies with diversified portfolios and specialized players focusing on specific asset classes or geographical regions. Recent market dynamics have encouraged consolidation activities, with established players acquiring smaller firms to expand their market presence and diversify their portfolio mix. The presence of both listed and private property companies creates a competitive environment where different business models and investment strategies coexist.
The market has witnessed significant merger and acquisition activity, particularly in specialized sectors like student accommodation and logistics properties. International investors and property companies continue to show strong interest in the UK market, leading to increased cross-border transactions and partnerships. Property management companies are expanding their service offerings to include sustainability consulting and technology integration services, creating new revenue streams. The market structure is evolving with the emergence of property technology firms and specialized real estate investment platforms, challenging traditional business models and forcing established players to adapt their strategies.
Innovation and Sustainability Drive Future Success
Success in the UK commercial real estate industry increasingly depends on companies' ability to align their portfolios with environmental, social, and governance (ESG) criteria and adapt to changing occupier demands. Market leaders are investing heavily in building modernization and sustainable technologies to meet stringent energy efficiency requirements and attract quality tenants. The ability to offer flexible lease terms, integrated property management solutions, and value-added services has become crucial for maintaining a competitive advantage. Companies are also focusing on developing strong relationships with local authorities and communities to facilitate planning approvals and ensure successful project delivery.
Market participants must navigate complex regulatory requirements while maintaining operational efficiency and financial stability. The increasing importance of location-specific knowledge and relationships with local stakeholders creates barriers for new entrants, while established players leverage their experience and networks to maintain market position. Companies that can effectively combine traditional real estate expertise with technological innovation and sustainable practices are better positioned for long-term success. The market rewards operators who can demonstrate resilience through economic cycles while maintaining strong tenant relationships and adapting to evolving market needs. Risk management capabilities, including exposure to different property sectors and geographical diversification, have become critical success factors.
UK Commercial Real Estate Market Leaders
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Land Securities Group PLC
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Segro PLC
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British Land
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Derwent London
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Hammerson
- *Disclaimer: Major Players sorted in no particular order

UK Commercial Real Estate Market News
- October 2023: British Land received a resolution to grant planning permission for an approximately 140,000 sq. ft multi-level last-mile logistics scheme on Mandela Way, Southwark. This project represents the latest addition to British Land’s 2.9 million sq. ft pipeline. Situated near the junction of New Kent Road, Old Kent Road, and Tower Bridge Road, the site will serve as a last-mile logistics hub for Southwark and central London.
- July 2023: British Land and Landsec formulated a comprehensive set of recommendations aimed at regenerating UK towns and cities. Their goal is to stimulate more growth, create additional homes, and generate more job opportunities by enhancing how the planning system supports brownfield regeneration. As major players behind some of Britain’s most significant regeneration projects, including Landsec’s 24-acre Mayfield neighborhood in central Manchester and British Land and AustralianSuper’s 53-acre Canada Water development in London, these property companies bring extensive experience in large-scale, complex urban developments. The insights gained from such projects have been applied and refined in their latest paper.
UK Commercial Real Estate Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
- 4.1 Current Economic Scenario and Consumer Sentiment
- 4.2 Commercial Real Estate Buying Trends - Socioeconomic and Demographic Insights
- 4.3 Government Initiatives and Regulatory Aspects for Commercial Real Estate Sector
- 4.4 Insights into Existing and Upcoming Projects
- 4.5 Insight into Interest Rate Regime for General Economy and Real Estate Lending
- 4.6 Insights into Rental Yields in Commercial Real Estate Segment
- 4.7 Insights into Capital Market Penetration and REIT Presence in Commercial Real Estate
- 4.8 Insights into Public-Private Partnerships in Commercial Real Estate
- 4.9 Insights into Real Estate Tech and Startups Active in Real Estate Segment (Brokerage, Social Media, Facility Management, and Property Management)
- 4.10 Impact of COVID-19 on the Market
5. MARKET DYNAMICS
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5.1 Drivers
- 5.1.1 Growth in the Country's Logistics Sector and Warehouse Space
- 5.1.2 Increasing Demand for Co-working Office Spaces
- 5.1.3 Increasing Infrastructure Investments
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5.2 Restraints
- 5.2.1 Rising Costs affecting the market
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5.3 Opportunities
- 5.3.1 Life Sciences and Tech Hubs driving the market
- 5.3.2 PropTech and Innovations in the Industry driving the market
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5.4 Industry Attractiveness- Porter's Five Forces Analysis
- 5.4.1 Threat of New Entrants
- 5.4.2 Bargaining Power of Buyers/Consumers
- 5.4.3 Bargaining Power of Suppliers
- 5.4.4 Threat of Substitute Products and Services
- 5.4.5 Intensity of Competitive Rivalry
6. MARKET SEGMENTATION
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6.1 By Type
- 6.1.1 Offices
- 6.1.2 Retail
- 6.1.3 Industrial and Logistics
- 6.1.4 Hospitality
- 6.1.5 Other Types (Schools, Recreational Areas)
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6.2 By Key City and Region
- 6.2.1 England
- 6.2.2 Wales
- 6.2.3 Northern Ireland
- 6.2.4 Scotland
- 6.2.5 London (City)
- 6.2.6 Rest of United Kingdom
7. COMPETITIVE LANDSCAPE
- 7.1 Market Concentration
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7.2 Company Profiles
- 7.2.1 Land Securities Group PLC
- 7.2.2 Segro PLC
- 7.2.3 British Land
- 7.2.4 Derwent London
- 7.2.5 Hammerson
- 7.2.6 Capital & Counties Properties PLC
- 7.2.7 Shaftesbury PLC
- 7.2.8 Tritax Big Box Reit PLC
- 7.2.9 Unite Group PLC
- 7.2.10 Wayhome
- 7.2.11 AskPorter
- 7.2.12 Landbay
- 7.2.13 Thirdfort
- 7.2.14 RentProfile*
- *List Not Exhaustive
- 7.3 Other Companies
8. FUTURE OF THE MARKET
9. APPENDIX
UK Commercial Real Estate Industry Segmentation
Commercial real estate is a property used exclusively for business-related purposes or to provide a workspace rather than as a living space. Most often, commercial real estate is leased to tenants for income-generating activities. In general, it includes buildings used for commercial purposes, including office buildings, warehouses, and retail buildings (e.g., convenience stores, 'big box stores, and shopping malls).
The UK commercial real estate market is segmented by type (office, retail, industrial and logistics, hospitality, and other types [schools and recreational areas]) and key city and region (England, Wales, Northern Ireland, Scotland, London [City], and the Rest of United Kingdom). The report offers market size and forecast values for the UK commercial real estate market in value (USD) for all the above segments.
By Type | Offices |
Retail | |
Industrial and Logistics | |
Hospitality | |
Other Types (Schools, Recreational Areas) | |
By Key City and Region | England |
Wales | |
Northern Ireland | |
Scotland | |
London (City) | |
Rest of United Kingdom |
UK Commercial Real Estate Market Research FAQs
How big is the UK Commercial Real Estate Market?
The UK Commercial Real Estate Market size is expected to reach USD 156.12 billion in 2025 and grow at a CAGR of 4.31% to reach USD 192.79 billion by 2030.
What is the current UK Commercial Real Estate Market size?
In 2025, the UK Commercial Real Estate Market size is expected to reach USD 156.12 billion.
Who are the key players in UK Commercial Real Estate Market?
Land Securities Group PLC, Segro PLC, British Land, Derwent London and Hammerson are the major companies operating in the UK Commercial Real Estate Market.
What years does this UK Commercial Real Estate Market cover, and what was the market size in 2024?
In 2024, the UK Commercial Real Estate Market size was estimated at USD 149.39 billion. The report covers the UK Commercial Real Estate Market historical market size for years: 2020, 2021, 2022, 2023 and 2024. The report also forecasts the UK Commercial Real Estate Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
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UK Commercial Real Estate Market Research
Mordor Intelligence provides a comprehensive analysis of the UK commercial real estate market. We leverage extensive real estate data and industry expertise. Our research thoroughly examines commercial property sectors, including office, retail, and industrial segments. This offers detailed commercial property data UK and insights into market dynamics. The report includes an analysis of the commercial real estate market size, property market data, and crucial insights into commercial property growth patterns across various real estate segments.
Stakeholders gain access to detailed commercial real estate market forecast information. This includes property market predictions and value trends that inform strategic decision-making. The report, available as an easy-to-download PDF, features an analysis of the commercial real estate dataset, CRE sector performance metrics, and property forecast UK projections. Our research is particularly beneficial for investors and developers. It provides statistics on the commercial property value increase per year UK and commercial real estate market predictions, enabling them to navigate market dynamics effectively.