Leicester has been recognised as the UK’s leading city for commercial property investment in 2025, according to new research by the Alan Boswell Group.
It secured first place thanks to low rates of business closures, stable retail sales at 100.3% of pre-pandemic levels, and a healthy 3.79% rise in rateable value over five years. The city also boasts relatively low crime, with only around six shoplifting incidents per 1,000 businesses.
Bristol took second place, largely because of its low rate of business closures—118 per 1,000—and minimal flood risk. Although its shoplifting rate was somewhat higher at nine per 1,000 businesses, the city’s solid 2.86% increase in rateable value over five years helped secure its standing.
Derby claimed third spot, with consumer spending hitting 102% of 2019 levels and non-residential burglary limited to one per 1,000 businesses, suggesting strong commercial security. It slightly trailed Leicester in empty premises relief, pointing to fewer vacant units and improved occupancy rates.
In contrast, Cardiff was ranked as the most challenging UK city for commercial property investment, scoring just 2.72 out of 10 in the research. The Welsh capital faces substantial flood risk, a notably high business closure rate of 152 per 1,000, and has seen its rateable values dip 1.86% over five years. Birmingham followed close behind with a score of 2.78, hampered by above-average closures and sluggish retail sales—only 89.5% of 2019 levels.
Bradford also fared poorly, scoring 3.34 out of 10. It faces heightened security concerns, with high shoplifting and burglary rates, alongside 144 business closures per 1,000.
“The UK’s commercial property market is undergoing a complex recovery, with investor interest growing in certain regions, while challenges persist in others,” said Wendy Burgess of the Alan Boswell Group. “The surge in demand seen in Q4 2024 suggests a cautious optimism, yet it’s clear that the outlook varies significantly by location. Cities like Leicester and Bristol benefit from strong retail sales and appreciating property values, while cities such as Cardiff and Birmingham face significant hurdles, including high business closures and stagnant property value growth.”
Burgess also emphasised that higher local crime rates can lead to rising insurance premiums, while flood-prone locations such as Cardiff may need specialised protection measures. With volatile property values and the risk of increased vacancy rates, she recommends regular reviews of insurance policies and proactive engagement with insurers: “Ensuring coverage is aligned with market conditions and local hazards can help protect both landlords and investors.”
Overall, the findings underscore the importance of localised data in shaping commercial property strategies. From Leicester’s favourable market conditions to Cardiff’s unresolved challenges, business owners and property investors alike must closely assess factors such as economic performance, crime rates, and environmental risks before making decisions.
