Commercial property investment on the up as interest rates ease, says Rightmove

Investors are flocking back to the commercial property market, with Rightmove reporting a 28% year-on-year surge in enquiries to buy—its highest jump since mid-2021.

This renewed appetite comes off the back of easing mortgage rates, creating more favourable conditions for buyers and boosting investment prospects across multiple sectors.

Industrial sector leads the charge

Rightmove’s latest Quarterly Commercial Insights Tracker reveals that industrial property is the star performer. Demand for industrial listings to invest in soared by 72% compared to Q4 2023, while leasing demand rose by 31%. Experts attribute this to continued growth in online retail, driving sustained need for warehouses, logistics hubs, and larger distribution spaces.

Offices benefit from renewed interest

In parallel, offices also saw an uplift, with investment demand up by 57% year-on-year. Rightmove notes that office leasing enquiries increased by 11%, pointing to a partial shift back to more frequent office-based working in early 2025. Supply in this segment has risen by a modest 2%, meaning competition for well-located, high-quality office space remains strong.

Outlook for 2025

Andy Miles, MD of Commercial Real Estate at Rightmove, confirms that falling interest rates “have further fuelled the attractiveness to invest in commercial property after a couple of tough years for the sector.” Meanwhile, Christian Smith of Savills reports enquiry levels and deals surpassing end-of-year expectations, especially within warehousing and distribution. Companies are also seeking modern, energy-efficient premises, indicating that high-spec industrial and office units could remain particularly sought-after in the months ahead.