Commercial property hotspots: where SMEs are searching in 2026

The UK has a large and diverse Small and Medium Enterprise (SME) population, with 5.7 million private sector businesses operating last year. Within that, where businesses choose to locate – or even where they start looking – can vary widely. 

Search activity suggests that SME interest in commercial property is widely distributed, rather than concentrated in a handful of major cities. 

Some of the largest increases are found in smaller locations such as: 

• Heckmondwike, Yorkshire and the Humber (+635%) 
• Devizes, South West England (+444%) 
• East Kilbride, Scotland (+387%) 

These are not traditional commercial centres, yet they are seeing the highest growth in search interest. 

At the same time, cities such as Manchester, Birmingham, and Leeds are still present in the dataset – but with increases closer to 20%, rather than several hundred percent. 

This gap in growth rates could suggest that some SMEs are expanding their search beyond established urban hubs, rather than moving away from cities entirely.

Looking more closely at the top five locations, one detail stands out: none of them is a major city.

Instead, towns such as Heckmondwike, Devizes and East Kilbride are experiencing the highest growth, with search activity increasing sharply over a short period

A second pattern is just as notable: in many of these locations, growth is driven by searches to buy commercial property.

For example, interest in Heckmondwike and Devizes is almost entirely linked to buying demand, with little to no growth in rental searches.

This could suggest that, in these areas, SMEs may be exploring more permanent options, although the data only reflects search behaviour, not transactions.

Top places to rent commercial property

When isolating rental searches, the top locations shift.

Bicester stands out in particular, with rental searches increasing by more than eight times year-on-year (+742%). Other locations, including Widnes and Bridgend, also show strong rental growth.

Unlike the top overall hotspots, these areas appear to be driven more by rental-led demand, with comparatively lower increases in buying searches.

Top places to buy commercial property 

Buying-led demand is concentrated in a different group of locations. 

Hatfield and Heckmondwike are two of the strongest examples, with buying searches increasing by more than 8x and 6x, respectively, while rental demand declines or remains flat. 

This type of split is particularly notable in places like Hatfield, where: 

• Buying interest is rising sharply 
• Rental searches are falling 

This divergence could suggest that businesses searching in these areas are approaching commercial property with longer-term intentions.

London remains one of the UK’s most visible commercial markets, and search behaviour within the capital appears fairly evenly distributed across boroughs.

Locations such as Kensington and Chelsea (+131%), Hackney (+81%), and Bexley (+49%) all show notable increases in commercial property searches. However, none approach the growth levels seen in smaller UK towns.

Interest in commercial property is increasing in many areas – but so too is the cost of occupying space.  

Rateable value is the government’s estimate of a commercial property’s annual rental value. It is used to calculate business rates and forms a significant part of ongoing costs. 

Between 2023 and 2026, rateable values increased (external link) by: 

• 19.2% overall across England and Wales 
• 22.3% in London 

This means that businesses exploring new premises are doing so in a rising cost environment. 

Costs vary depending on the type of property 

Changes are not consistent across sectors: 

• Industrial: +21.1% 
• Office: +14.3% 
• Retail: +9.3% 

While a range of factors are likely at play, these differences may partly explain why rental demand remains strong in some locations and buying demand is more concentrated in others. 

They may also be influencing SMEs to look beyond traditional commercial centres when considering new locations.

Taking on commercial property is often one of the most significant decisions a small business makes. Timing that move can be challenging, particularly for new founders, including the growing number of Gen Z entrepreneurs. 

Matthew Hayes, Managing Director of Champions (external link), works closely with scaling SMEs, property investors and workspace specialists. Through that work, he sees first-hand how businesses approach the transition into physical space.

He explains that the decision is rarely about growth in isolation: 

‘For many SMEs, the move into physical premises is a major milestone. It can strengthen company culture, improve productivity, create a more professional client experience and support long-term growth. However, it is also one of the biggest financial and operational commitments a growing business can make.’ 

Signs a business may be ready for commercial property 

According to Hayes, the decision often comes down to whether the current setup is limiting growth. 

‘A business is ready to move into physical premises when the lack of space is actively holding it back.’ 

He highlights several scenarios where this might apply: 

• When teams struggle to collaborate effectively 
• When client perception is affected by the working environment 
• When recruitment becomes harder due to limited workspace 

‘Ultimately, the question is: is the current setup helping the business grow, or is it becoming a barrier?’ 

How SMEs are approaching location decisions 

The data shows that interest in commercial property is spreading beyond major cities, with towns such as Heckmondwike seeing some of the fastest growth in searches. 

Hayes notes that choosing a location requires a broader view: 

‘Location should never be chosen purely on what is convenient for the business owner. Entrepreneurs need to think about customers, clients, employees, brand perception and future growth.’ 

He also points out that the surrounding environment can influence how a business is perceived: 

‘Premises should act as a flagship for the business and reflect the level the company has reached.’ 

The risks behind commercial property decisions 

While demand is increasing, costs are also rising – and Hayes warns that these are often underestimated: 

‘The biggest risk is underestimating the true cost. Rent is only one part of the commitment… businesses also need to factor in business rates, utilities, maintenance, and exit costs.’ 

This combination of rising costs and increasing search activity may help explain why: 

• Some locations show strong rental demand 
• Others show growth in buying interest 
• Many SMEs appear to be exploring multiple options before committing 

As Hayes puts it: 

‘Taking on premises is a major investment and should be treated as such.’

While search data shows where interest is growing, individual businesses illustrate how those decisions play out in practice. 

For Larsen Architecture (external link), moving into a physical space was not immediate, but became necessary as the business evolved. 

Ryan Wenham, Chartered Architect and Registered Interior Designer, shared: 

‘As we started to expand our team and work with different designers and creatives, we knew we needed a space to bring them all together.’

Choosing a location 

The business chose to base itself in Liverpool’s business district, a decision shaped by practicality. 

Ryan shared: ‘It was important to have a central location that was easy to reach by car and by public transport… Being in the business district of Liverpool made sense. 

‘We wanted somewhere with a good atmosphere… and had a bit of a wow factor.’ 

Balancing cost and compromise 

Like many SMEs, the decision involved trade-offs. 

‘It is hard to find a large space that meets our requirements… while fitting into the budget of a small company. There has to be compromise somewhere, and we chose to take a smaller space.’ 

This reflects a broader market reality. With rateable values rising across the UK, and particularly in high-demand areas, businesses may need to balance: 

• space requirements 
• location quality 
• overall affordability 

The impact of taking on commercial property 

For Larsen Architecture, the move has had a clear effect on how the business operates. 

Ryan said: ‘It is massively positive. Our business would have always been limited without being able to bring people together physically.’ 

At the same time, they have not moved away from flexible working entirely: 

‘Working from home and working remotely is where I do most of my work… but having the ability to meet in person… it is an absolute must.’ 

While this is just one example, it illustrates how organisations may be responding to some of the factors highlighted in the search data. Rather than a full return to traditional models, SMEs may be employing hybrid working models, testing locations before scaling, and using premises in more targeted ways

To identify commercial property hotspots across the UK, we 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]’. 

Search data was collected across a broad range of UK towns and cities, and growth rates were compared against the same period in the previous year. Locations with a search volume of less than 100 in the initial period were removed from the research. 

The analysis was segmented to explore overall search growth, as well as separate trends for rental and purchasing intent. 

Where appropriate, we removed locations that could distort the dataset due to name duplication with larger international counterparts. For example, locations such as Perth were excluded, as search results may reflect activity in similarly named areas outside the UK rather than genuine domestic demand. 

Every effort was made to ensure data accuracy and validity throughout the analysis. 

However, as search data reflects online behaviour, the findings should be interpreted as an indication of interest and exploration, rather than confirmed business activity, outcomes or motivations. 

Rateable value data used in this report is sourced from the Valuation Office Agency’s 2026 non-domestic rating revaluation.

The views of the experts cited are not the views of Hiscox. 

Hiscox is a specialist insurance company that offers a diverse range of business insurance products. Find information on our business insurance products, including public liability and professional indemnity.