Over the past few years, the northern commercial property market has experienced a period of considerable flux. Increasing interest rates, ongoing inflation, and rising operational costs have reshaped decision-making, while supply constraints and sector-specific demand have presented both opportunities and bottlenecks. However, to paint a true picture of such a complex backdrop, we require deeper insight beyond these broad economic signals alone. That’s why we sought firsthand insight from those on the frontline.

Speaking to a sample of regionally representative property agents across the north of England, our research captures the nuanced reality of the market in early 2025. Our insights reveal a stable but cautious market, where optimism and resilience sit side by side with uncertainty. Here, we explore a snapshot of the key themes emerging from the northern property pulse 2025 and what they tell us about the challenges and opportunities facing northern commercial property.

Stability coupled with caution

Across the north, stability is the prevailing sentiment, though it is tempered by caution. Over half of agents (51%) described the market as simply stable, while more than a quarter (27%) viewed conditions as somewhat weak, citing slowing deal activity, economic pressures, and increasingly cautious occupiers as some of the biggest challenges. At the same time, the industrial sector in particular stood out as a resilient performer, buoyed by good take-up and demand.

Slow deals and decision-making cycles

Transactions are now taking longer than in previous years, with most deals completing between nine and 16 weeks. This is a marked reflection of the more measured approach investors and occupiers are taking to navigate uncertainty, with 80% citing slow decision-making as the biggest barrier to completing transactions. Economic uncertainty compounds this hesitancy, with 69% of respondents highlighting inflation, interest rates, and political instability as ongoing concerns.

Transaction complexities

Property size also influences the speed of the transaction. Smaller units and those between 6,000 and 20,000 square feet typically take four to six months to secure a deal, while larger properties above 21,000 square feet can remain on the market for seven to twelve months. Pricing misalignments between buyers and sellers, high operational costs, and drawn-out legal and funding processes further complicate transactions. The cumulative effect of these factors is a market that moves cautiously, where momentum can be easily lost if expectations are not carefully managed.

Nuances in investor interest

Investor sentiment in the north reflects a complex but resilient market. Almost half of respondents (49%) reported no significant change in interest compared to the previous year, while 22% observed a slight increase and 16% noted a slight decline. The north west continues to attract interest due to perceived value and lower entry costs relative to the south, and some agents have even noticed increased enquiries from southern and overseas investors. Funding challenges and pricing gaps remain obstacles, with investors increasingly focused on fundamentals such as lease security, covenant strength, and income stability rather than location alone.

Navigating a changing market with confidence

The northern commercial property market may be stable on the surface, but beneath the headlines, uncertainty continues to shape its pace and direction. Bringing more than 60 years of experience in the commercial and industrial property market, Towngate remains committed to supporting agents, investors, and occupiers across the region, delivering high-quality properties while working collaboratively to navigate economic and structural challenges. By investing in infrastructure, fostering partnerships, and responding to sector-specific opportunities, our goal is to help the market move from cautious stability toward confident growth.

Download the northern property pulse 2025 report below to explore the data, insights, and trends shaping the north’s commercial property landscape.