Commercial property investment in the West Midlands surged in 2025, with volumes rising 55% year-on-year to £2.8bn, outperforming the national market for the first time in three years.
We compiled the figures for our Market Insite 2026 report, which reveals a broad-based recovery across all sectors, underlining renewed confidence in the region’s commercial property market.
The data was presented to a gathering of industry professionals on Tuesday 10 February in Birmingham, where our guest speaker, leading economist Graeme Leach, observed that amid “some of the most challenging conditions in recent memory”, organisations must “position themselves for long-term resilience rather than short-term reaction”.
The Market Insite report noted that industrial property led the West Midlands boost. Capital continued to target the industrial sector, which accounted for the largest share of investment activity.
The findings paint a healthy picture of investment in the West Midlands, as overall investment levels rose by nearly £1bn compared with 2024. In other findings:
Ben Robinson, Innes England’s head of investment, said: “We are optimistic as we head into 2026. With broadly resilient occupier markets and the cyclical factors that weigh on property markets continuing to recede, we expect to see a steady improvement in both investment volumes and values throughout the year.”
Our guest speaker Graeme Leach, CEO of Macronomics Consulting, warned the audience at city members’ club Eighteen about dangers in the UK’s outlook, cautioning that political risk could prove a ‘canary in the coal mine’.
But he said that three ‘shock absorbers’ may have a protective effect on the UK economy in 2026: deeper rate cuts, an acceleration in quantitative easing, and slack in the household savings ratio.
Graeme added: “Amid ongoing uncertainty in the British economic outlook, organisations are facing some of the most challenging conditions in recent memory.
“In times like these, it is more important than ever to get ahead – by planning proactively, investing wisely and positioning for long-term resilience rather than short-term reaction.”
Our report revealed that the West Midlands’ largest industrial transaction of 2025 was Royal London’s £197m off-market purchase of the 1.65 million sq ft Fradley Park in Lichfield from Ares.
The largest deal in the living sector saw QuadReal and Realstar acquire the Allegro build-to-rent scheme at One Exchange Square, Birmingham, for £115m.
Meanwhile, after several quieter years, offices began to attract renewed investor attention. The largest office transaction was the £38m purchase of Baskerville House in Birmingham city centre by Priory Real Estate. This reflected a 9.8% net initial yield.
The results reinforce the view that the West Midlands market has entered a more confident and resilient phase, said Adam Rock, equity director at Innes England and head of our Birmingham office, which has experienced sustained growth since it opened in April 2022. The office completed more than 400 valuations last year with an average market value of around £875,000.
Adam said: “The West Midlands commercial property market in 2026 is navigating a complex landscape of resilient domestic demand and heightening geopolitical friction.
“Ongoing geopolitical volatility has kept international investors cautious, leading to a more ‘muted’ recovery in investment volumes compared to previous cycles, even as lower gilt yields offer some ‘flight to safety’ for capital.”
The Birmingham Market Insite event was among four we organised, including those in Nottingham, Leicester and Derby. Managing director Matt Hannah said the 2026 report brings together a year of marketing evidence, transactional activity and on-the-ground insight across the Midlands.
Matt added: “Reviewing the data is always a fascinating process. Our in-person events are a great chance to explain the thinking behind the numbers, as well as to build new connections.
“Data is everything in today’s business environment. Our Market Insite research reflects how the region and the commercial property market are responding to shifting economic conditions, changing occupier behaviour and investor priorities.” To read the full West Midlands investment breakdown, download Innes England’s Market InSite 2026 report here: https://innes-england.com/market-insite-2026/