2026 predictions for Worcestershire’s commercial property market
January 2026My 2026 predictions for Worcestershire’s commercial property market are as follows:
There is still a distinct shortage of commercial property in Worcestershire and the wider west midlands area which will continue to influence rents and capital values.
We think that rents for modern industrial / warehouse buildings have now peaked but expect further rental growth for prime grade A office accommodation as companies realise that the great work from home “experiment” is now well and truly over and to attract the right talent, employers must provide the right working environment.
On the investment side we expect to see many more properties coming onto the market in 2026 as companies and individuals start to offload assets in preparation for the new rules surrounding inheritance tax on pension fund assets which comes into effect on 6 April 2027.
This offloading of properties in self-invested or self-administered pension schemes could provide opportunities for clients keen to invest in commercial property and we as a company expect to do more acquisition work, particularly for our retained management clients who are keen to grow their portfolios.
There is clearly a lack of confidence in the UK at present, and we saw this leading up to the budget with a definite hesitation from prospective purchasers and tenants.
I too run a business and listening to the general sentiment over the last 12 months it is very tempting to put plans for growth on hold, but we know that business cannot stand still and we have little or no control of those external factors.
What I would say is this, since I started GJS Dillon in 2010, I have seen the mismatch between the supply of good quality commercial premises and demand get more pronounced year on year.
As a team, much as we try to persuade developers to provide new high quality office buildings and small industrial units suitable for the SME market (which makes up the biggest proportion of our local economy) this simply isn’t going to happen in the short term.
So, if as a business you know that you need more or different space for your business going forward, I would suggest that when you find what you are looking for you commit early, as this continued shortage of good quality space is only going to get more pronounced, which in my mind means that rents and prices will only go one way.
The other major change in our region is the drive towards local government reorganisation and the question of whether we will have one unitary authority in Worcestershire or whether this will be split into a northern and southern region.
My plea to the public sector is not to get too embroiled in this process at the expense of ignoring the ultimate plan and vision for the county as a whole. We all need to clear what we want this county to look like in five, ten and even twenty-five years time.
So much of the activity over the last couple of years has focused on short term policy based upon budget constraints and whilst I know that we can not ignore these, we still all need to be clear on the long-term plan for the county.
For more information on the future of Worcestershire’s Commercial Property market and how we compare to the rest of the UK, please click the banner below and register your free place at our event taking place on 25th February 2026.
