The commercial property market appears to be entering a more balanced phase, with fresh data suggesting activity is beginning to recover after the slowdown that followed the 2022 peak.
According to Colliers, recent data shows commercial transaction activity increased by nearly 8% in the year to March 2026, while the total value of sales rose 14%. Although activity remains below the highs recorded in 2022, the figures suggest confidence is gradually returning to the market.
Industrial property continues to lead the sector, accounting for 53.7% of the total value of commercial property sales over the year to March. Retail property has also strengthened, increasing its share of total sales value to 25.3%.
The office market remains more subdued, representing just under 10% of total sales value. Colliers said this reflects more cautious occupier demand, changing workplace preferences and a more selective investment environment.
Overall, the data suggests the market is becoming more stable, with different sectors performing according to their own market conditions rather than moving in the same direction.
What this means for commercial property investors
Commercial property covers a broad range of assets, including warehouses, factories, offices, retail premises and mixed-use buildings. While they all fall under the commercial property umbrella, each sector responds to different economic trends.
Industrial property has continued to benefit from strong demand for logistics, manufacturing and distribution space, while retail has shown encouraging signs of recovery. Office property, meanwhile, continues to adapt as many businesses refine their long-term workplace strategies.
For investors, that means broad assumptions about commercial property may be less useful than understanding the specific sector they’re considering. The right investment will depend on factors such as tenant demand, lease quality, location, financing costs and long-term investment objectives.
Anyone considering purchasing commercial property should also ensure they understand the lending process. Commercial lending often differs from residential lending, with loan structures, deposit requirements and assessment criteria varying depending on both the property and the borrower.
Commercial property finance can be quite different from residential lending. If any of your clients are looking to invest, purchase business premises or refinance an existing property, we’d welcome the opportunity to discuss their options and help them navigate the lending process.
