Search interest in commercial properties has increased by 20% year-on-year, according to new analysis of Google search data by Hiscox, suggesting businesses continue to see value in investing in physical premises despite ongoing economic pressures.
The findings come at a time when Britain's high streets are firmly back on the national agenda, with policymakers increasingly focused on how town centres can support local communities and economic growth.
Smaller towns lead growth
Hiscox analysed year-on-year changes in Google search volumes for terms such as 'commercial property to rent in [location]' and 'commercial property for sale in [location]', across 1,000 towns and cities in the UK.
The biggest increases in commercial property interest were concentrated in smaller towns and cities, with locations recording triple-digit growth year-on-year:
- Heckmondwike, Yorkshire and the Humber (+635%)
- Devizes, South West (+444%)
- East Kilbride, Scotland (+387%)
- Cumbernauld, Scotland (+320%)
- Northwich, North West (+268%)
- Selby, Yorkshire and the Humber (+265%)
- Barrow-in-Furness, North West (+229%)
- Gainsborough, East Midlands (+224%)
- Bideford, South West (+216%)
- Cwmbran, Wales (+214%)
The data suggests that businesses are casting a wider net when searching for physical premises, looking outside of traditional commercial hubs.
Major cities still strong
While smaller locations saw the fastest growth rates, interest remains strongest in some of the UK's biggest cities. The locations generating the greatest increase in commercial property searches are:
- Manchester, North West (+28,430 searches)
- Bristol, South West (+25,620)
- Edinburgh, Scotland (+25,340)
- Leicester, East Midlands (+25,330)
- Liverpool, North West (+20,580)
- Glasgow, Scotland (+20,130)
- Birmingham, West Midlands (+19,990)
- Sheffield, Yorkshire and the Humber (+19,560)
- Nottingham, East Midlands (+19,390)
- Leeds, Yorkshire and the Humber (+19,050)
Nick Thornhill, direct and partnerships director at Hiscox, commented: "We're seeing two trends emerge simultaneously. Major cities continue to generate significant levels of commercial property interest, likely because of the scale, talent and connectivity that they offer.
"At the same time, smaller towns are recording some of the fastest rates of growth. They are becoming increasingly attractive destinations for businesses looking to establish or expand a physical presence because they can offer access to local communities, lower costs and new growth opportunities.
"Physical locations continue to offer important advantages for businesses, whether that's attracting customers, building communities, strengthening brand presence or supporting collaboration among teams.
"The level of interest we're seeing suggests many businesses continue to view commercial premises as an important investment in long-term growth."
High street policy focus
Hiscox's research comes as policymakers increasingly focus on the future of Britain's high streets and how town centres can attract businesses that support local communities and economic growth.
Thornhill said: "The conversation around Britain's high streets has changed significantly in recent months. Rather than focusing solely on vacancy rates and decline, policymakers are increasingly debating how to encourage businesses that contribute to local communities, attract footfall and create vibrant town centres.
"Our research suggests that there is an appetite among businesses to invest in physical premises, but the economic reality cannot be ignored. For many small businesses, costs such as business rates, rent and utilities remain significant barriers to expansion.
"The government's decision to provide business rates relief for some high street businesses recognises the pressures that many businesses are under and highlights the importance of physical premises to local economies."
