Office investment demand rises 44% in 2025, with some regions reporting extraordinary growth
Professional landlords are increasingly investing in office space, with Shawbrook’s latest figures showing a 44% rise in applications for office-related projects in the first half of 2025.
Some regions experienced extraordinary growth, including the South West (233%), West Midlands (225%), and both London and Wales (100% each). Yorkshire and the Humber saw an 83% increase, while the South East rose 50%. However, East Anglia recorded a 60% decline, the East Midlands dropped 20%, and Scotland fell 14%.
According to Daryl Norkett, director of real estate proposition at Shawbrook, diversification has been the prevailing strategy for professional landlords, enabling them to adapt to market and economic challenges.
“With Covid firmly in the rear-view mirror, businesses are adjusting to the new normal, which for many includes a return to office working - as evidenced by a 100% increase in applications for London office projects,” said Norkett.
Recent findings show that 82% of investors see office space as a viable opportunity over the next five years, with 16% expecting revenue growth between 21% and 30% by 2030. For brokers, this signals a sustained pipeline of commercial finance opportunities, especially in high-demand regions highlighted by Shawbrook’s data.
Last year, MPA UK reported that brokers are playing a critical role in steering landlords from purely residential holdings toward commercial, semi-commercial, and HMO investments. By explaining comparative yields and risk profiles, brokers are shaping how landlords adjust to evolving tenant demand.
The lender Together recently introduced a semi-commercial loan range aimed at properties combining commercial and residential elements, with five-year fixed rates from 7.99%. These products cater to individuals, companies, SIPPs, trusts, and even non-UK residents.
Many SME landlords are unprepared for commercial finance requirements, underestimating deposit sizes (25–35%), interest rates, and the need for two years’ trading history and financial forecasts. High street banks are increasingly referring such clients to specialist brokers.
Norkett further noted that with economic turbulence likely to persist, professional landlords could benefit from capitalising on growing demand across various asset classes to boost yields and safeguard their businesses, and that consulting a specialist commercial broker may help them expand their portfolios and navigate the market more effectively.
