West Midlands Commercial Property Prices Rose Alongside Supply in the First Half of 2026
Article Summary
- For-sale listings across the West Midlands rose 7.6% between January and June 2026, from 590 to 635, while average asking prices per square foot climbed 8.7%, from £136.78 to £148.71. That combination set the region apart, as availability fell across most of the UK.
- Leasing availability barely moved over the half, down 1.3%, so the investment signal sits on the for-sale side.
- Seller-reported cap rates held broadly steady, easing from 7.85% to 7.80% and sitting just above the all-England average of 7.68%.
In the first half of 2026, the West Midlands broke step with most of the country: The number of commercial properties for sale grew, and their asking price rose alongside it.
That looks more unusual against the national mood. UK commercial property investment reached £9.7 billion in the first quarter of 2026, close to 40% below its five-year first-quarter average, according to CoStar's investment figures, as overseas buyers pulled back. The West Midlands moved the other way. On the leasing side, the number of properties to let barely shifted, so the movement this half sat squarely on the for-sale market.
Rising Supply Met Rising Prices in the West Midlands
The region carried 590 pieces of commercial property for sale at the end of January 2026. By mid-June that had grown to 635, a rise of 7.6%. In most markets we have tracked this year, more stock would be the story on its own. Here it is only half of it, because asking prices climbed at the same time, up 8.7% over the half, from £136.78 to £148.71 per square foot.
That pairing is the unusual part. Where availability rose elsewhere, prices didn't always follow. For example, Wales saw the largest supply increase of the half alongside falling prices, while the South West saw more modest increases.
| Region | For-sale listings, Jan to Jun | Average asking price, Jan to Jun |
|---|---|---|
| West Midlands | +7.6% | +8.7% |
| Wales | +8.8% | -5.8% |
| South West | +1.3% | +5.2% |
The average building size on the market shrank over the half and the top of the price range barely moved, so the gain points to genuine firming per square foot rather than a few high-value listings lifting the average. It was uneven over the first six months of the year, though: close to half of it landed in June alone.
This chart plots for-sale listings and average asking price per square foot in the West Midlands as cumulative percentage change from 29 January 2026. Both climbed over the half, with listings up 7.6% and asking prices up 8.7%. Asking prices reflect live listings rather than completed sales. Source: LoopNet proprietary listing data.
That combination reads as demand keeping pace with supply, and it lines up with what regional analysts are already reporting. Birmingham is a major regional commercial market, and demand there has held firm even as national activity cooled.
Savills's Birmingham data put prime office vacancy at just 2.5% early in 2026, the lowest since 2022, alongside a sharp jump in rents. Industrial and logistics point the same way: on Colliers's figures, the West Midlands took 3.8 million square feet in the first half, with the wider Midlands leading UK take-up. Capital followed, too. Innes England recorded West Midlands commercial investment up 55% in 2025 to £2.8 billion, industrial-led and outpacing the UK market.
The for-sale data fits that picture. In a market where demand was weak, more stock would drag prices down; here it did not. Supply rose 7.6% and prices rose with it, which is what you would expect if buyers are absorbing the extra stock rather than a scarcity squeeze pushing prices up. That points to a sturdier kind of price strength than the scarcity-driven rises in tighter regions.
These are asking prices on live listings, not achieved deals, though, and much of the rise landed in June, so treat it as a reason to check pricing closely rather than proof that values have re-rated.
Cap rates held steady while the rest of the market moved
Seller-reported cap rates were the still point in the data, easing from 7.85% in January to 7.44% in May before ticking back up to 7.80% in June. That leaves the region a shade above the all-England average of 7.68%. Steady cap rates alongside firmer asking prices suggest buyers are still valuing the region's income much as before, with no added premium for risk.
What the West Midlands Data Means for Investors
- Supply and prices rose together, which is rare. Most UK regions saw availability fall in the first half. The West Midlands added stock and still saw asking prices climb, a sign appetite is keeping pace with supply.
- Test the price rise before you trust it. The 8.7% gain is real, but it's an asking-price figure and much of it landed in June. Underwrite each deal on its own income and comparables before concluding the region has re-rated.
- The second half is the tell. Steady cap rates and a cautious backdrop make this a signal to monitor before calling it a durable shift. If supply keeps rising and prices hold, the demand read is confirmed; if prices stall as stock builds, the firming was sellers testing higher asks rather than the market re-rating.
Rising supply usually cools prices, and in the West Midlands it hasn't yet. The current range of commercial property for sale in the West Midlands has widened since January, and the second half will answer whether the pricing holds. That contrasts with the market for London commercial property, where supply tightened as prices firmed, the more familiar squeeze the region has so far avoided.
Data source: LoopNet proprietary listing data, January to June 2026. Cap rate figures represent the average capitalisation rate (similar to net initial yield in the UK) across for-sale listings and reflect the composition of listed stock rather than independently verified transaction data.
