Rightmove’s Q3 data shows industrial was the only sector to grow on both measures
Occupier demand for commercial property rose across all four main sectors in the third quarter, while investor enquiries fell in three, according to new Rightmove data.
The Commercial Insights Tracker for Q3 2026 compares 1 July to 30 September with the same period a year earlier. Rightmove defines demand as email enquiries to agents about properties for lease or investment on its site. Supply is the number of listings, adjusted for growth in its customer base.
For commercial mortgage brokers, the split shows where client activity may be strongest: occupiers needing space, and investors who can afford to wait.
Stay ahead of the UK mortgage market. Subscribe to the Mortgage Introducer daily newsletter for broker news, rate updates, and the industry latest delivered to your inbox every morning.
Leasing holds up as investment cools
Industrial was the strongest performer. Leasing demand rose 6% and investment demand 7%, making it the only sector to grow on both measures.
Office leasing demand rose 2%, leisure 3% and retail 1%. On the investment side, office demand fell 1%, retail 7% and leisure 11%.
Offices recorded the biggest rise in leasing supply, with listings up 17%, well ahead of the 2% increase in demand. Industrial leasing supply rose 16%, retail 9% and leisure 2%.
“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.”
Sedgwick said that although more offices are being marketed, “not all offices fit modern businesses’ needs”, leaving firms competing for a small pool of high-quality stock.
“It is encouraging to see demand growing. With supply rising much faster, occupiers can be selective and they are choosing quality and certainty,” said Aman Parmar, head of marketing UK at flexible workspace provider BizSpace. “For SMEs, that increasingly means space that is ready to move into, on flexible terms that let them grow without long-term fixed commitments.”
Regions diverge
Industrial leasing demand rose in nine of the 11 regions. Scotland led with 18%, followed by Wales at 15%, the South East at 12%, London at 11% and the South West at 10%. Demand fell 2% in the East Midlands and 7% in the North East.
Scotland also led office leasing at 13%, ahead of the East Midlands at 6%. London and the West Midlands both rose 5%. The North East fell 4% and Yorkshire and the Humber 3%. Within London, Wandsworth rose 112% and Southwark 13%, while Hammersmith and Fulham fell 19% and Islington 17%.
Investment demand fell in seven of the 11 regions. Scotland rose 15%, the South West 9%, the East of England 6% and the South East 5%. London recorded the largest fall at 15%, with the North West down 9%.
Sedgwick said: “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.”
Wider market backdrop
Other data points the same way. CBRE’s UK Monthly Index shows all-property capital values fell 0.9% in Q3 as yields moved outwards, a factor brokers may weigh in valuations and loan-to-value discussions. Knight Frank reports industrial investment reached £2.76 billion in Q3, up 85% from £1.49 billion in Q2.
Borrowing costs remain a question. The Bank of England held Bank Rate at 3.75% on 17 September in a 6–3 vote, with three members backing a rise to 4%. Its next decision is on 5 November.
Rightmove notes that some market participants measure demand differently, such as active searches by tenant representatives in square feet. Its figures reflect enquiries on its own platform, not completed deals.
