Commercial leasing demand rose across all four main property sectors in the third quarter of 2026, while investment enquiries fell in three, according to Rightmove’s latest Commercial Insights Tracker.
Industrial property performed strongest, with leasing demand up 6% year on year and investment demand up 7%. It was the only sector to grow on both measures. Office leasing demand increased 2% compared with Q3 2025, while leisure rose 3% and retail 1%. On the investment side, office demand declined 1%, retail 7% and leisure 11%.
“For occupiers, a property requirement can be difficult to postpone indefinitely,” said Louise Sedgwick, commercial director at Rightmove.
“A lease expires, a business expands, or its existing premises cease to suit its operations. Economic uncertainty may influence the size, location or cost of the eventual commitment, but it does not remove the underlying need for space.
“An investor considering an acquisition can often wait. That difference provides a plausible explanation for stronger leasing enquiries alongside more subdued investment interest.”
Offices recorded the largest increase in leasing supply, with available listings up 17% year on year, well ahead of the 2% rise in demand. Industrial leasing supply increased 16%, followed by retail at 9% and leisure at 2%.
“The office figures emphasise the need to consider the relationship between the space available and occupiers’ requirements,” she continued.
“Although more offices are being marketed, not all offices fit modern businesses’ needs, so in fact we have a situation where companies are competing for the same small pool of high-quality stock. It will be an ongoing theme to measure whether businesses are actually able to secure the types of space they need.”
“It is encouraging to see demand growing,” said Aman Parmar, head of marketing UK at BizSpace. “With supply rising much faster, occupiers can be selective, and they are choosing quality and certainty. For SMEs, that increasingly means space that is ready to move into, on flexible terms that let them grow without long-term fixed commitments.”
Regionally, commercial leasing demand was strongest in Scotland for both industrial and office space. Industrial leasing demand rose in nine of the 11 regions, with Scotland up 18%, Wales 15% and the South East 12%. London recorded an 11% increase and the South West 10%, while demand fell 2% in the East Midlands and 7% in the North East.
Scotland also recorded the largest rise in office leasing enquiries, at 13%. The East Midlands followed at 6%, with London and the West Midlands both up 5%. Office demand declined 4% in the North East and 3% in Yorkshire and the Humber.
Investment demand varied by region. Scotland recorded a 15% rise across the sectors covered, followed by the South West at 9%, the East of England at 6% and the South East at 5%. London saw the largest fall, at 15%, while the North West declined 9%. Investment demand fell in seven of the 11 regions.
“Data centres and defence requirements offer potential sources of future industrial demand, creating opportunities for owners and developers able to provide suitable premises or sites,” she added.
“The industrial and logistics sector continues to be the most resilient part of the market, and SMEs are a big part of that story,” Parmar said. “Businesses that make, fix, store and ship things need small, well-located units on terms that let them grow.
“Data centres are now competing with logistics for the same land and power, while the supply of smaller multi-let industrial units remains tight. That makes existing, well-located stock even more valuable, particularly for SMEs who need to scale quickly.”
