A report from Together said these three cities offered unique commercial opportunities with peak yields and high profits.
Looking at Birmingham specifically, Together found that 70% of commercial property professionals thought investing in office space was a good opportunity in the next five years, with the same proportion pointing to retail units.
Around 78% said student housing or purpose-built student accommodation (PBSA) presented the best prospect of achieving greater yields.
The lender’s own internal data showed that there was a 38% increase in commercial and BTL mortgages and bridging finance for businesses in the city, with £100m loans in 2024 – a rise from £80m in the previous year.
Within Manchester, around 77% of investors, property professionals and developers believed investing in retail space over the next five years was a good opportunity.
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Approximately 40% said semi-commercial properties, like a flat above a shop, also offer good opportunities.
The report noted that around a third of BTL landlords with properties in Manchester expect to see their rental yields grow by up to 10%, with 19% expecting a 10-25% increase.
Approximately 8% said they expect rental yield growth of between 26% and 50%.
Together reported that BTL lending in the area has increased by around 92% to £52.5m year-on-year.
The report stated that 80% of investors believed retail space will be a good opportunity over the next five years, while 28% have also seen more high street chains and restaurants in the city centre in the last 12 months.
Around 98% added that semi-commercial properties in Glasgow were an investment opportunity.
Together’s lending data also shows that commercial loans and mortgages in Scotland grew by around 31% from 2024 to 2025.
‘Commercial property sector has turned a corner’
Ryan Etchells, chief commercial officer at Together, said: “Our research highlights an overall optimism across the commercial property market. While London continues to retain its appeal for commercial property investors and developers – it’s clear there are regional cities that are becoming increasingly attractive and we would expect this interest and investment to continue over the next five years.
“There is a sense that the commercial property sector has turned a corner, with a shift back to office or hybrid working, business confidence rebounding to its highest level in nine months, and renewed optimism over growth in the UK’s economy all positive signs.
“However, it’s crucial property professionals continue to seek out flexible financial support to help them seize opportunities to grow and diversify their commercial portfolios, ensuring they can leverage all available opportunities – and the specialist lending sector is in a prime position to provide the finance needed to achieve their ambitions.”
