Christie & Co launches 2026 market outlook amid strong sector performance

In 2025, Christie & Co celebrated its 90th anniversary and recorded strong deal activity across most sectors, despite a generally subdued wider commercial property market. Based on transactions conducted by Christie & Co, the average price index increased by 4.2% over the past 12 months, driven by robust buyer demand outstripping supply. While businesses faced challenges from rising employment costs and increased National Insurance contributions, many adapted through cost-saving measures and operational efficiencies. Business distress levels continued to rise compared to 2024, but have not yet reached the anticipated peak.

Sector performance in 2025 was shaped by stabilising interest rates and renewed lender confidence, offset by persistent inflationary pressures. Strategic restructuring and consolidation remained prevalent, with corporates divesting underperforming assets and entrepreneurial independents driving acquisition demand.

Notably, several significant corporate divestment projects returned businesses to private ownership, injecting fresh energy into the market, whilst demand for valuation and advisory services also increased as refinancing markets loosened and operators moved beyond pandemic recovery. Resilience, succession planning, and smart investment in people, tech, and infrastructure are key to driving sustainable growth.

Average sale prices across each sector in 2025 were as follows:

Dental: +2.9%

Pharmacy: +4.1%

Care: +7.1%

Childcare: +3.8%

Retail: +5.9%

Pubs: -0.4%

Restaurants: +9.9%

Hotels: +2.3%

Distress Levels

In 2025, our distressed sale mandates rose by 22%, surpassing pre-pandemic levels by 12%. This was driven by a rise in creditor action, including an increase in enforcement by alternative lenders and also HMRC. Persistent inflation, escalating employment costs and debt servicing challenges weakened business viability, with discretionary sectors further impacted by muted consumer confidence. Government measures, including higher taxes and above-inflation wage increases, compounded these pressures.

In 2026, we expect to see continued financial distress and an increase in non-performing operational real estate, fuelling demand for restructuring and insolvency services. Early intervention remains critical to maximise turnaround and recovery options rather than waiting for a crisis point.

Stephen Jacobs, Director - Bank Support & Business Recovery, comments, “Economic challenges and financial pressures were catalysts for a rise in business distress in 2025. We expect these conditions to persist in 2026, presenting opportunities for well-funded and speculative investors to acquire non-performing operational real estate that will come to market as a consequence of business distress and failure.”

Outlook for 2026

As 2026 commences, Christie & Co anticipates a continuation of positive activity levels across our sectors. While rising costs and economic uncertainty will continue to pressure businesses, demand for business property remains high, supported by readily available bank funding. As long as these conditions persist, activity levels are expected to remain robust.

Darren Bond, Global Managing Director at Christie & Co, comments, “As we reflect on the past year, we are pleased to present our Business Outlook 2026. Despite economic challenges, our sectors have shown resilience and adaptability, and with strong buyer demand and a healthy transaction pipeline, we remain optimistic about the year ahead.”

Read the full Business Outlook 2026 report here: https://www.christie.com/news-resources/business-outlook-2026/