As we end 2025, it is now customary for us here at Boxpod to take a look at where we think we might be heading in 2026 in terms of commercial property. The world is a pretty volatile place at the moment, and as technology propels us forward, ever accelerating, it can be increasingly difficult to predict where we are going with much precision. But one thing that we can be sure of is that by this time next year, the situation will have moved on again!
What we do have, however, are predictions about where we see the economy going, which markets we are expecting to strengthen, and some of the major priorities that customers have with regard to ESG and sustainability. These can help us to make some predictions about commercial units in the UK for next year.
Improved Economic Environment
Those involved in the commercial property market are predicting a stronger economic environment in 2026, potentially leading to better investment opportunities. As the UK looks to build stronger ties with both the EU and the rest of the world, there is more hope that businesses from outside the UK will be looking to invest in commercial property here.
In 2025, we have seen significant growth in the commercial unit market, with the bigger cities – London, Manchester, and Birmingham- seeing the highest demand. This is a sign that these markets are picking up again after a difficult few years, and hopefully we will be seeing these areas – and others – continuing to strengthen in 2026.
Commercial Property Growing Markets
The success of the rental and investment markets in commercial units relies almost completely on the success of different sector markets. For example, when manufacturing is thriving in the UK, workshops and warehouse units are in high demand. Equally, if the retail market is booming in the UK, we see a far higher demand for retail units to rent.
It is predicted that in 2026, we are going to see an ever-increasing demand for office units, especially in the larger, well-connected towns, and of course, warehouse units to rent – ideal for data centres or distribution centres.
In addition to these leading markets, however, experts are predicting that in some areas we will be seeing a strengthening of the high street – boosting demand for retail units. London’s Mayor, for example, is planning to pedestrianise London’s major shopping street – Oxford Street, highlighting the continued importance of retail, whilst accepting the need for change and evolution to suit shoppers in the world today.
As post-pandemic lifestyles continue to change – alongside the growth of technology, particularly AI, we are seeing a rise in demand for units such as garden centres and flexible office space. The hybrid model of working has well and truly set in, and it appears that many people are looking to enjoy splitting their time between an office unit and home, and we are seeing this reflected in commercial property.
ESG, Green Buildings, and Employee Well-Being
As a reflection of Government policy as well as societal expectations and employee (and employer) preferences, ESG is still a massive cog in the commercial unit market. 2026 is shaping up to be a continuation of this.
We are, therefore, expecting too see a continued rise in demand for green and more sustainable commercial units – whether that is through energy-efficiency and energy- saving – the capture and use of renewable energy, insulation, energy heat pumps, and using effective machinery, or by enabling businesses to behave in a more energy-efficient way – encouraging recycling, or cycling to work, for example. Businesses now understand the importance of behaving in a more energy-efficient manner, both for themselves but also for the impression that they are making on the public.
Another major factor that we are seeing as central to the popularity of a commercial unit to rent is employee well-being. The way the job market is developing, especially amongst younger people, is that the commercial unit needs to compete with home working. This means making going into a workspace beneficial. Employees are looking for nicer work environments, better environments – good light, temperature, and ventilation, for example.
ESG is set to be key to attracting the highest commercial unit rent in 2026.
Technology
Another major player that we are expecting to see, relating to commercial units in 2026, is, of course, technology. The explosion of AI in the way that the world is running – especially in the business world – is already having a massive impact. From the requirement for high-speed, super-secure internet connections to the installation of virtual meeting rooms or the accommodation of robots within a warehouse unit, the physical requirements of a commercial unit are changing, as well as the technical requirements.
Technology is being used for employees to control the temperature in their own personal desk space in an office unit, to sort deliveries in a distribution centre, or to order products online in a retail space that does not hold any stock for their customers to walk away with. In 2026, we are expecting this to continue along this trajectory, especially as AI takes hold and embeds itself into our every business life.
Mixed-Use Spaces
One phenomenon that began to take root in 2025, that we expect to see rise significantly in 2026, is mixed-use spaces. These are areas where we are seeing mini communities being built. These spaces consist of a variety of different units, from housing to retail units, to leisure units, amenities, restaurants, and gyms, for example. They will often also incorporate some green space.
As the Government desperately looks to build more homes – and, of course, the infrastructure that is required alongside the housing, we are expecting to see a great rise in the number of mixed-use spaces that are being planned, with the commercial units that are also required.
Final Thoughts
The world is a difficult one to predict at the moment, but we are hoping that 2026 brings more positivity around the economy and business, seeing growth and strengthening of markets.
We are expecting to see more growth, especially in office units, some retail units, and, of course, any commercial units that might be required for the success and growth of the e-industry.
If you are looking for a commercial unit for your business, why not take a look at our listings here at Boxpod to see if we have the right place for you?
If you are a landlord, take a look at our website, and we can help you list your commercial unit here with us.