CoStar’s latest Market Activity Tracker shows that UK occupier markets have maintained robust momentum over the past six months, though performance continues to vary widely across sectors and locations.
London has led the resurgence, with a sharp rebound in office demand and standout leasing activity in both the City and Canary Wharf. While industrial leasing centred on the best-located Golden Triangle markets, retail activity was headlined by central London’s continuing revival, along with substantial lettings boosting smaller regional markets. Overall, investment activity was subdued, though substantial retail and industrial transactions boosted some mid-sized markets up the rankings.
To see markets' relative performance, click here to download the latest Market Activity Tracker, which is available to CoStar subscribers and non-subscribers.
In the office sector, London's market conditions improved significantly during 2025, with net absorption at its highest level since 2018, signalling a return to demand growth after five years of losses. The City Core has led activity, with the financial sector being the major contributor. A defining London story in 2025 was Canary Wharf’s revival, driven by several major leasing deals, including those with Visa and HSBC.
Bristol continues to lead the Big Six regional cities, as city centre leasing reached its highest level in six years in 2025, led by large corporate deals at Temple Quay. While Berkshire and North Hampshire's office market has been boosted by the arrival of the Elizabeth line, vacancy rates in Oxford and Cambridge have risen following a surge in construction completions.
While Bristol also remains near the top of the industrial rankings due to the downward vacancy shift from its strong leasing performance, it is the Golden Triangle market of Coventry that takes the top spot, supported by strong leasing activity from neighbours Leicester and Northampton during the second half of 2025. Activity was highlighted by M&S’s mega deal at DIRFT and several lettings by third-party logistics – more than compensating for the vacancy impact of supply additions in these markets. In contrast, bordering Midlands markets such as Derby, Nottingham and Staffordshire have seen a noticeable slowdown in activity.
In the retail sector, central London’s revival continues, as footfall in London's West End reached its highest level since 2020, with Covent Garden and Oxford Street notable outperformers. Major shopping centre lettings are a key driver of the recent nationwide increase in take-up. Derby comfortably took the top spot in the ranking, ahead of its local rival Nottingham, led by a variety of traditional and leisure lettings at Derbion shopping centre.
Despite softer demand patterns throughout 2025 in the hotel market, Scotland maintained its strong performance over the second half of the year. Glasgow, Edinburgh and Scotland Provincial benefited from international visitor numbers and a strong calendar of major events. The next 12 months promise to be another positive year, as Glasgow hosts the Commonwealth Games once again. In London, the second half of 2025 drove performance growth and largely offset losses experienced during the first half of the year.
While investment activity remains subdued, substantial transactions have propelled several mid-sized markets up the rankings. York has topped the investment table following the sale of a 1million-square-foot industrial unit and two substantial shopping centres. While shopping centres remain in favour, volumes have cooled in recent quarters, albeit several have traded, such as St James’ Quarter in Edinburgh and the Bullring and Grand Central in Birmingham. Industrial investors had their sights set on well-connected and dynamic markets, including Shropshire and Staffordshire, Coventry and Kent.