Demand to invest in retail is surging while supply is flatlining, pointing to a busier market as we head into the end of 2025, Rightmove data shows.
Clamour to invest in retail property is 30% higher than the same period a year ago, measured by enquiries to commercial agents about listings, while supply dropped by 2%.
Rightmove attributed rising activity to Bank of England base rate cuts, as it was reduced to 4% on 7% August, the fifth reduction in the past year.
Andy Miles, managing director of commercial real estate at Rightmove, said: “Bank Rate cuts are supporting investment in the retail sector, and the commercial property sector more broadly compared with last year.
“The retail sector is also being helped by more realism over values, and an improving occupational market. However, like all aspects of the commercial property market, there are some segments and sectors of the market doing better than others.
“High-street retail is showing some positive figures overall, but some high streets and shopping centres in secondary locations will be moving more slowly.”
High-street retail investment demand, which makes up a large proportion of the retail sector, was up by 45% compared to the same quarter last year.
Outside of the retail sector, the office market is also continuing its recovery, with demand to invest in office space up by 31% compared with last year, while demand to lease office space was up by 7%.
Several key London markets have seen big boosts in leasing demand, including Westminster, the City of London, and Hackney.
Rightmove data shows that demand for investment in commercial property was up 11% year on year in Q3.
