Why are experienced landlords investing in office spaces? Here, we look at the latest data, from the uptick in applications to regional demand.
New research from Shawbrook reveals that professional landlords are increasingly investing in office spaces, with the number of applications for these types of projects rising by 44% in the first six months of 2025.
Regional demand for office space
Consequently, demand for office space from property investors has more than doubled across some regions, with the South West seeing a staggering 233% increase in applications, and the West Midlands with a 225% increase.
London and Wales both reported a 100% increase, with Yorkshire and the Humber (83%) and the South East (50%) following closely behind.
However, not all regions have seen the same level of landlord activity. East Anglia has seen a 60% drop, with East Midlands and Scotland also reporting a 20% and 14% drop in activity, respectively.
Why is this new trend emerging?
A spokesperson at Shawbrook commented, “Diversification has been the theme of the past couple of years for professional landlords, who continue to demonstrate agility and adaptability in the face of ongoing market and economic challenges.
“With Covid firmly in the rear view mirror, businesses are adjusting to the new normal, which for many includes a return to office working – as evidenced by a 100% increase in applications for London office projects.
“As economic turbulence looks set to be on the cards for the foreseeable future, professional landlords should be looking to take advantage of increasing demand across different asset classes to maximise their yield and protect their business. Talking to a specialist commercial broker could be beneficial for landlords looking to expand their portfolios and navigate the market effectively.”
Financing and investing in office space opportunities
As landlords increasingly explore office spaces as an investment type, the case for diversifying beyond traditional buy to let is compelling.
Commercial finance solutions are often more adaptable and designed to meet your specific needs. Lenders frequently offer interest-only options, extended loan terms, and higher loan-to-value (LTV) ratios, especially when properties are supported by strong tenant covenants or long leases.
Office investments also tend to deliver stronger yields than buy to lets, particularly in high-demand areas. With many businesses re-establishing in-office working, landlords benefit from longer tenancy agreements, more predictable rental income, and less risk of void periods.
Ultimately, investing in office space helps landlords spread their risk and protect against changes in the residential market. With the right support from a specialist commercial broker (like us!), finding new opportunities that align with your long-term property investment goals is easy.
Get started
If you’ve found an office space you’d like to invest in, speak to our experts! We’ll explain the finance options, the step-by-step mortgage process, and all the factors you’ll need to consider before you invest.
Call our team on 0345 345 6788 or submit an enquiry here.
