New data from Rightmove has revealed a jump in demand to invest in commercial property compared with this time last year.

Rightmove’s new Quarterly Commercial Insights Tracker analyses millions of data points to track supply and demand over time. Demand is measured by all enquiries to commercial agents about listings for lease, or to invest in via Rightmove. The data shows that demand to invest in commercial properties of all types has risen by 11% compared to the same three-month period last year, the biggest quarterly jump in demand since 2021.

The industrial sector has seen the biggest increase within the commercial investment sector. Demand to invest in industrial commercial properties is up by 34% compared with Q3 2023.

Some experts suggest one contributing factor could be the Bank Rate cut in August, and a trend of lowering mortgage rates in the commercial property market, which has made borrowing finance cheaper.

A Rightmove spokesperson says: “We’ve seen some sharp increases in demand across all sectors in the investment market when compared with the same period a year ago. A likely contributor is falling interest rates, which is of course decreasing the cost of capital and making investing in commercial property more attractive.”

Claire Williams, head of UK & European industrial research at Knight Frank, adds: “This year, we have seen a return to a steady and robust occupier market, with take up of industrial space on a par with levels recorded in pre-pandemic years. With inflation now below the Bank of England’s 2% target and above inflation wage growth, the economic outlook and consumer confidence are improving. Consumers starting to loosen the purse strings and spending more on discretionary goods, in turn, driving demand for more delivery services.