After several years of navigating economic turbulence, the UK commercial property market is showing encouraging signs of recovery. According to the latest CBRE Monthly Index, April 2025 saw capital values for UK commercial real estate rise by 0.2%, This continued the pattern of small but steady increases in capital values seen throughout the first quarter of the year. Rental values also rose by 0.2% in April, while total returns for the month were 0.7%.
One of the standout trends in the current commercial property market is the renewed interest in modern office spaces. Total returns for the office sector were 0.6% in April. Office capital values increased by 0.2% overall, with Central London capital values recording a larger rise, at 0.7%. Rest of UK Office capital values increased by 0.1%, but Outer London/M25 Office capital values fell by 0.2% in April. However, all office segments saw an increase in rental values, with the office sector overall recording rental value growth of 0.2% in April.
The 'back to the office' trend has also driven demand for hybrid workspaces, as businesses look for increasingly flexible environments that balance remote and in-person work. The CBRE’s Workplace Project Benchmarking report showed that the percentage of companies opting for assigned seating has declined from 83% to 55%. In contrast, hybrid and desk-sharing models are gaining acceptance, increasing from 12% to 36%, reflecting a growing preference for flexibility and activity-based work environments. This shift is also reflected in the growing number of companies with unallocated hoteling and visitor seats, which grew from 5% to 9%, indicating a gradual but significant move toward this trend. These shifts has spurred new developments and refurbishments, making modern, flexible office spaces an attractive investment opportunity when combined with modern, flexible funding options.
Student accommodation is another growth area. Despite some challenges, the demand for purpose-built student accommodation (PBSA) remains strong. Universities, facing funding pressures, increasingly rely on private providers to meet demand. CBRE’s data reveals that 81% of investors consider student housing a strong investment, with a notable percentage expecting double-digit revenue growth over the next five years.
For mortgage advisers, navigating the commercial mortgage market can be challenging, particularly with the wide range of lenders and their varying criteria. This is where specialist packagers offer invaluable support, especially for advisers who may lack the time or expertise to manage complex cases.
With an in-depth market knowledge, packagers connect clients with the most suitable lenders operating in this paces, ensuring that applications are accurately prepared to meet each lender’s requirements. This expertise reduces the risk of rejected applications and accelerates approval times, ultimately leading to better outcomes.
But this role goes beyond securing the right funding. Specialist packagers handle much of the administrative work, from coordinating with solicitors, surveyors, and valuers to ensuring that all necessary documentation is complete. This efficient, collaborative approach keeps transactions on track and minimises delays, while still allowing the adviser not to lose sight of their client or their potential future business.
In a rapidly changing market, a trusted specialist packager can be the difference between success and missed opportunities. This support allows advisers to focus on building client relationships, knowing that their clients' commercial property needs are expertly managed in an increasingly complex lending landscape.
