As we head towards the end of the year, London commercial property trends for 2025 are showing a shift from location-based thinking to smarter choices.
In prime districts like Mayfair, St James’s, Victoria, Marylebone and Belgravia, investors, occupiers and landlords are taking stock of these trends.
This article offers a practical property market analysis London style, exploring the main shifts we’ve seen this year, what they mean for you — and how you can use those insights to act with confidence.
Market snapshot: recovery, repricing and repositioning
The year began with a bit of relief as inflation edged down in September 2025.
With interest rates holding, the market has had a chance to stabilise, but that doesn’t mean things are back to normal. Instead, there appears to have been a repricing of commercial assets, especially older offices and tired retail units.
Buyers are more selective, deals take longer, and many assets are being revisited for repositioning.
According to the latest CBRE European Office Occupier Sentiment Survey 2025, businesses are reassessing space not from scratch, but by reconfiguring what they already use. The theme for 2025? Quality over quantity.
Key commercial real estate trends that shaped 2025
The key commercial real estate trends that have shaped 2025 are:
A. Office Space: Emphasis on Quality and Flexibility
The office market remains tricky, but the winners are clear. Landlords are investing in ESG (Environmental, Social & Governance) upgrades, flexible layouts and tech-enabled buildings in areas like Mayfair and Victoria. Occupiers are favouring shorter leases and agile space over long-term commitments to help keep their options open.
B. Retail & Leisure: Selective Optimism
While the high street is still challenged overall, luxury, experiential and destination retail in Mayfair and St James’s seems to be holding up well. In Marylebone, the blend of culture, dining and boutique shopping has drawn interest from occupiers looking for an “iconic but predictable” location.
C. Investment Behaviour: Selectivity and Value-Add
Gone are the “deal volume at any cost” days. Investors are focusing on sub-£10m lots, repositioning opportunities and assets with strong covenants. Prime Central London continues to command attention, but it’s now about layered value — refurbishment, sustainability and tenant quality.
What all of this means for landlords & investors in Central London
If you own or manage commercial real estate in zones like Belgravia or Marylebone, it seems there’s been a shift into a “value and resilience” phase. That means:
- Prioritise buildings that can adapt — from hybrid-friendly offices to mixed-use destinations.
- Understand that tenants (and investors) now ask for flexible leases, ESG credentials and modern fit-outs.
- Don’t rely on market bounce-back alone — manage your vacancy risk and get hands-on with asset repositioning.
With the right commercial property investment advice, assets in London’s top districts can benefit from scarcity and connectivity. But the complacency of “location alone will do” appears to be gone.
How Mellersh & Harding can help you navigate London’s commercial property market
At Mellersh & Harding, we combine decades of Central London expertise with a practical, partner-led approach that helps clients understand what today’s London commercial property trends really mean for their assets.
Whether you're reviewing a portfolio, considering a disposal, or assessing future opportunities, our team provides clear, commercially focused advice rooted in real market insight.
From acquisitions and disposals to valuation, lease advisory and asset management, we offer integrated support shaped around your goals, rather than generic market assumptions. It’s this blend of experience, independence and extensive local knowledge that helps our clients make confident, well-timed decisions in a fast-moving market.
Talk to the specialist team at Mellersh & Harding
If you’d like to discuss your portfolio, explore new opportunities or gain a clearer view of current commercial real estate trends, we’d be delighted to help.
Call us on 020 7522 8500 or visit our latest listings page to see what’s available across London’s core districts.
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