Commercial Auction Market
Overview
Looking back to our May market update, sentiment in the commercial auction market appears to have seen a slight up-tick. Through our four auctions that we have held in 2025 we have raised £160M from the sale of 240 Lots at a success rate of 86%. Of these sales, 47 were at a price point of £1M or greater.
From a geographical view, 52% of these sales were in London and the South East and in terms of sector distribution, approximately 70% fell into the retail asset class. Nearly half of the transactions were concluded either prior to or post auction, proving the proactive nature of our experienced team and the power of the unconditional auction contract.
Total Raised to date
Total Transactions to date
Total Success Rate
Deal Highlights
Highlights from our June auction include a pair of convenience stores in Oxfordshire, both let to Midcounties Co-operative Ltd for a further 15 years with index-linked reviews, and residential upper parts let on long-leases. The sale in Bicester achieved 7% with the property in Abingdon achieving 7.4%. Through 2025 we have sold 18 Convenience stores, raising £16M, which shows that they remain a very sought after sub-sector of the retail market for private investors.
A restaurant with self-contained 2-bedroom maisonette located on New Kings Road, London, SW6 generated strong interest and was eventually sold prior to auction for 5.1%. Whilst the rents were reversionary, this re-affirms that location remains a driver of demand and buyers are willing to pay handsomely to purchase in the best locations. Sales within Greater London throughout the year now stand at £55M.
Lot 22: 5-11 (odd) & 12a West St. Helen Street, Abingdon, Oxfordshire, OX14 5BL
Who is buying?
We saw buyers bidding from Canada, South Africa and Spain which demonstrates the reach of our auctions and the appeal of UK Commercial Real Estate to private investors. The results from our Buyer’s Survey indicate their appetite to purchase, and to continue to do so, remains strong and their feedback suggests there is a significant amount of capital waiting to be spent, which we anticipate will be forthcoming as sentiment strengthens over the remainder of the year.
Global, political and economic uncertainty has continued to influence market sentiment over the past 12 months, and the results from the first half of this year are very similar to those that we saw in the second half of last year, where we sold 226 lots and raised £164M, with 45 lots at £1M+.
Direction of Travel
The majority of our buyers take a medium-to-long term view on property investment and, for most, it remains an attractive asset class to be invested in, particularly during times of higher inflation. Hopefully we will see greater domestic and international stability in Q3 & Q4 which, together with lower interest rates, will lead to an increase in transaction volumes.
It is evident that the gap between sellers’ and buyers’ expectations is narrowing, predominantly thanks to an imbalance in demand and supply. As ever, pricing remains key to attracting competitive bidding at our auctions and the most popular lots continue to be those that are securely let, have indexed linked reviews or potential for rental growth, as well as those with the potential to create value, particularly where underlying residual values are strong.
We are currently marketing our July auction comprising 102 Lots and, following a brief Summer interval, we anticipate renewed enthusiasm on both sides of the transaction as we head into the latter part of the year. We expect more buyers will see value across a broader spectrum of assets and hope the supply/demand imbalance will begin to correct itself.
