The UK’s industrial property market is exhibiting sharply contrasting performances throughout key sectors on the midpoint of 2025, in accordance with CBRE’s newest UK Actual Property Market Outlook Mid-12 months Evaluation. Whereas the workplace market is benefiting from robust demand for premium workplace house and renewed abroad funding, the life sciences sector is seeing regular development in funding however slower motion in transactions.
On the identical time, the information centre market is coming into a interval of remarkable growth, with document ranges of take up forecast and new developments extending past conventional hubs. The findings spotlight how underlying provide constraints, shifting occupier wants and focused authorities help are reshaping funding priorities throughout the nation.
A number of the report’s key findings embody:
Workplaces
Demand for Grade A premium workplace house stays robust, with restricted provide driving rental development throughout all UK markets tracked by CBRE. London’s Metropolis submarket is anticipated to see the best enhance in prime rents in 2025, adopted by the West Finish. Constrained pipelines, coupled with robust occupier demand, are supporting values, notably in areas with good transport hyperlinks and facilities.
Funding exercise is being buoyed by bigger lot measurement offers and a resurgence of abroad consumers, who account for 59 p.c of transactions to this point this yr. The versatile workspace sector can be diversifying, with each flex operators and landlords in regional cities increasing their choices. Whereas volumes are forecast to enhance on the previous two years, they continue to be beneath pre pandemic norms.
Life sciences
The UK’s life sciences sector is poised for renewed momentum, with enterprise capital funding within the first half of 2025 reaching £2 billion, exceeding equal intervals within the earlier three years. Leasing volumes have risen 65 p.c yr on yr, though there’s nonetheless a disconnect between funding rounds and quick house necessities.
Authorities coverage is ready to play a pivotal position, with the Life Sciences Sector Plan aiming to place the UK as Europe’s main hub by 2030. Nonetheless, challenges such because the excessive drug rebate scheme (VPAG) and regulatory delays persist. Transaction exercise has been subdued as a result of a mismatch in purchaser and vendor pricing expectations, although modest enchancment is anticipated within the second half.
Information centres
The info centre market is heading in the right direction for a document breaking yr, with London take up forecast to hit 183MW in 2025, a 58 p.c rise on 2024 and properly above earlier predictions. Nearly all new house anticipated this yr might be pre let, pushing emptiness charges within the capital beneath 8 p.c.
With energy constraints in conventional hubs like Slough and Docklands, operators are more and more searching for websites outdoors the M25. Relaxed planning guidelines, together with in some inexperienced belt areas, are enabling new developments to proceed. Authorities backing, which designates knowledge centres as “Crucial Nationwide Infrastructure”, is anticipated to underpin additional development, with AI workloads and hyperscaler demand driving a lot of the growth.
