And just like that, 2025 is over! Wishing you all a very happy new year from us here at Boxpod, and may 2026 be full of success and prosperity to all of our commercial unit landlords and tenants!
In today’s article, we are going to take a look at commercial property in 2025 and where we are now. In last year’s article, we were hoping for a more stable world, with a resolution to a number of the conflicts that we were seeing in the world, and causing a great deal of instability.
Unfortunately, it feels that we are not able to say that these conflicts are near to resolution, or indeed that the world is more stable. The British Government appears to be trying to work more closely with the EU, which is helping to improve trade between the UK and Europe. In addition to this, we are seeing the Government looking to promote and build local communities, including reviving the high street and investing in public buildings.
2025 has been a tough year for the UK, making sacrifices in order to increase public spending, without feeling much of a benefit. The hope for 2026 is that the public will begin to feel the benefits of this Government spending and investment, reduce the cost of living, and life will generally be easier for everyone. The stronger the economy and the richer the public feels, the healthier the commercial unit market. And that’s what we all want!
Retail
One of the industries that has changed significantly over the past few years is the retail sector. With the massive impact of e-commerce, traditional retailers have seen increased challenges, but the businesses that are winning are the ones that are embracing technological change, whilst continuing to engage with their customers in the offline world. This shows a move away from entirely online businesses, boosting demand for retail units to rent.
An example of a retailer that is adapting to these changes is Ikea, with their shop that opened in May 2025 on London’s Oxford Street. The idea of a furniture shop opening on Oxford Street, where there is very limited parking and busy public transport, at first seems rather odd, and in great contrast to previous Ikea shops that were located generally out of town.
With the incorporation of technology, however, they have made it work. The shop still has its iconic display rooms, enabling customers to wander through different interior design ideas, but then giving them the chance to order the delivery of their furniture. They have also incorporated a deli (serving their famous meatballs), planning and consultation service, as well as a live studio for interviews, demos, and events. This is a perfect demonstration of the direction that we have seen retail heading in 2025 – the incorporation of technology, as well as creating a unique customer experience, that cannot be enjoyed ‘online’.
In 2025, we saw omnichannel retail (retailers offering a number of different channels to buy their products) becoming very much the norm, with the physical location of the shop becoming increasingly important – hence, the Ikea shop opening on one of the world’s busiest shopping streets, for example, although seemingly unnecessary for a shop like Ikea.
Tourism
Closely linked to retail, is leisure and tourism. We have seen a pick-up in tourists in the UK in 2025, which is great news for cafes, restaurants, museums, and hotels, as well as retailers. Tourists are great for the high street as they often visit a town or city and are happy to spend their money to a much greater extent than those who live there.
It is predicted that the UK saw about 44.4 million tourists in 2025, spending around £34.6 billion, a rise in numbers from 2024 of 4%. With many of these visitors being wealthier, spending their money on retail, entertainment, and high-end accommodation, this obviously can have a great impact on the economy.
The UK is one of the most popular destinations for tourists in the world and can have a hugely positive impact on the economy, so renting a commercial unit in a good location for tourists, especially if it is a retail unit, café, or restaurant, is essential.
ESG and Sustainability
We are all now well aware of the climatic changes that we are beginning to see in the world. Temperature changes, the increase in heavy rain and flooding, droughts, and storms make it hard to ignore. This means that throughout the last year, we have seen more and more businesses putting sustainability near the top of their priorities when it comes to renting a commercial property – and shouting about it!
Businesses are increasingly doing what they can to save and reduce energy, recycle waste, and invest in sustainable practices, and this is reflected in their choices of commercial units as well. It is becoming increasingly imperative that commercial unit landlords look to ensure that their properties are as ‘green’ as possible, as well as being as protected from natural incidents as possible, to get the best rental price for their unit.
Accessibility
A larger general awareness, as well as government initiatives in 2025, have created a greater necessity for businesses to make it possible for people with disabilities to work in their organisations.
This has meant that they have to look closely at several factors within their businesses, including ensuring that their commercial unit is suitable. From ramps and disabled toilets to automatic doors and flashing fire alarms, consciousness about employee needs is imperative.
Commercial unit landlords should again be looking at a range of measures that can be taken in order to create a more accessible workplace for their tenants. Of course, some of this would be the responsibility of your tenants, but this can also be a great way for landlords to get a better ROI.
Flexibility
One of the key words of 2025, when it comes to commercial units, is flexibility. Over 2025, significant numbers of employees have been cementing themselves into the hybrid working model, spending a couple of days each week in their workplace, and a couple from a remote location. This increases the necessity for flexible workspaces, where different combinations of staff can be in one place at any time, and the ideal commercial unit for these businesses is one that has the flexibility to deal with this.
This means enabling employees to have a desk if they are present, creating private spaces for face-to-face meetings, or larger spaces for collaboration or bigger groups of people. It should also incorporate the use of technology, such as video conferencing, to enable seamless processes.
Final Thoughts
As is often the case, the role and incorporation of technology appear to be one of the factors that had the greatest impact in 2025. From robotics in warehouses and omnichannel retail to the use of video conferencing in office units, it is increasingly important that commercial unit landlords try to enable this in their units.
Alongside this, sustainability and accessibility have become increasingly important in tenant requirements from the commercial unit that they are looking to rent.
With the hope of a stronger and more stable economy in 2026, we are all hoping for a great year in commercial units!
If you are a landlord looking to list your commercial unit, take a look at our website to see how we can help you.
If you are a business looking for a commercial unit to rent, we can help you find your ideal base, so get in touch with us here at Boxpod today!