Demand for retail space in the west London borough of Hammersmith and Fulham is rising, with several positive indicators pointing towards ongoing demand moving forward.
The UK occupier markets have shown continued robust performance over the past six months, though the story varies by sector and location, according to CoStar’s latest Market Activity Tracker report.
As the world began to return to normal after the COVID-19 pandemic, the significant surge in demand for UK logistics space, driven by massive increases in online retail, started to wane. South Coast industrial vacancies, which had fallen to their lowest recorded levels, rose sharply as much of the space acquired by retailers and third-party logistics companies was no longer needed.
Knightsbridge’s office vacancy rate has stabilised at a relatively low level amid steady demand for space and ongoing weak development in the wealthy and exclusive district.
The UK economy underperformed expectations in the third quarter of 2025, growing at its slowest pace in nearly two years, forming a weak backdrop to a vitally important Budget on 26 November.
Office construction starts in London have fallen to their lowest level since 2010 as economic headwinds and planning delays impact appetite for development. In the 12 months to the third quarter 2025, work commenced on just 2.5 million square feet of new space, a decline of more than 50% from the same period last year.
A wave of office-to-residential conversions is reshaping Leicester’s city centre, as developers respond to structural change in the office sector and rising demand for housing.
Glasgow’s office investment market is stirring back to life as 2025 draws to a close, with opportunistic buyers homing in on assets ripe for repositioning amid softer pricing and a shortage of best-in-class space.
Leasing activity has surged in 2025 in the Docklands Core market, which includes Canary Wharf, as occupiers look east to satisfy their occupational requirements. So far this year, over 500,000 square feet of new leases have been signed, making it the strongest year since 2019, with two months to spare.
Third-quarter hotel trading results surprised to the upside, as revenue per available room returned to growth, following a weak first half of the year, according to CoStar data.
Scotland’s office vacancy rate has climbed to 10.8%, its highest level in more than 15 years, as firms continue to rightsize their footprints more than five years after the pandemic began.
Industrial property performance across Oxfordshire is increasingly defined by a tale of two submarkets. While Cherwell, anchored by Banbury and Bicester, is grappling with rising vacancies amid a wave of new development, Oxford Core remains one of the tightest and most expensive industrial locations in the UK, constrained by land scarcity and competing uses.
Subdued investor demand and deal activity filtered through to weaker property pricing in some segments of the market in the third quarter of 2025, but London offices continued to buck the trend.
The Society of Property Researchers recently held its first regional office market roundtable in Manchester, hosted by CoStar at the company’s 1 Marsden Street office.
Bristol’s Eastern Fringe office market has posted a strong performance in the first nine months of 2025, with leasing activity accelerating and a shrinking development pipeline driving vacancies lower.
Leasing activity across the Big Six office markets has been led by financial and professional services in 2025, supported by a strong showing from the TMT sector. While the change of use to education space continues to support secondary stock, flexible workspace and public sector demand have slowed compared to recent years.
Heightened global uncertainty led many investors to pause activity over the summer, but office occupiers took up space at the greatest pace since the pandemic began, providing encouragement to investors moving forward.
The UK economy returned to growth in August as manufacturing output improved, although faltering business and consumer confidence form the more immediate backdrop to a vitally important Budget on 26 November.
Vacancies in the Gatwick industrial market look to have finally peaked after a prolonged period of growth, marking a turning point for one of the South East’s most strategically located logistics hubs. The surge in availability, driven by unprecedented construction activity and a slowdown in occupier demand, appears to have reached its zenith, setting the stage for a gradual recovery.