Owner-Occupiers Drive Resilient Commercial Property Market as Retail and Offices Lead Investor Demand
The latest Commercial Property Demand Index reveals that while investor appetite across the sector held steady in Q2, strong levels of owner-occupied commercial mortgage activity are helping drive market performance, as business owners increasingly look to secure long-term premises for their operations.
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We analysed current demand across the commercial sector by looking at the proportion of each property type listed for sale that had already secured a buyer during Q2 and the results show retail properties are leading the way, accounting for 27.8% of total demand, followed by offices at 27.3%, and industrial/warehouse units at 26.2%.
Although the current level of demand seen across the market remained largely unchanged versus Q1, leisure and hospitality stood out as the only segment to see positive growth, with demand rising by 0.7%.
However, whilst the commercial landscape may have remained somewhat static with respect to new buyer activity, we noted a surge in enquiries and completions for owner-occupied commercial mortgages, as established businesses seek to safeguard their operations and avoid rising rental costs by purchasing their own premises — from retail units and warehouses to offices and industrial spaces.
Alasdair McPherson, Commercial Property Expert at Rangewell, commented:
“The commercial market remains resilient, with retail and office properties proving most attractive to buyers. But what’s really fuelling activity beneath the surface is the increasing number of business owners looking to purchase their own premises.
With commercial mortgages tailored for owner-occupiers, many businesses are making strategic decisions to invest in their future, take control of their location, and build long-term value.
From our perspective, the market hasn’t remained static, it’s simply evolving, with owner-occupiers at the centre of that change.”
Data Tables and Sources
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Commercial listings data sourced from Rightmove and correct as of 20/6/25.
- See the full data tables and sources here.