Milton Keynes: Commercial Property Market Update

The Milton Keynes commercial property sector remains lively and is continually developing, driven by the city’s strategic location and expanding economy, according to Kirkby Diamond's Senior Agency Surveyor, Nick Bosworth:

The sector continues to demonstrate its resilience and appeal, while investment opportunities remain plentiful, particularly in high-quality, sustainable spaces. As Milton Keynes grows, its dynamic commercial property sector will remain a key contributor to the city’s ongoing success.

According to EG Radius statistics, in the first half of 2025 Kirkby Diamond had the most sq ft transacted across all sectors in Buckinghamshire at 206,289 sq ft, and in Milton Keynes we completed 42% more deals than all the other agents combined, with a total of 29. 

Offices:

The office market has maintained a strong level of interest from both local occupiers and those from outside the area - particularly London and the Home Counties. Local businesses continue to account for the majority of leasing activity. The review for the first half of 2025 shows that prime office spaces now command headline rents of up to £35 per sq ft, while good quality Central Milton Keynes offices typically achieve around £27 per sq ft. On the business parks, Grade B secondary stock rents from £17 per sq ft, while refurbished Grade A stock can reach up to £25 per sq ft.
With the supply of new, high-quality Grade A office space diminishing, largely due to the conversion of office buildings to residential use in the city centre, many occupiers are shifting their focus toward refurbished and second-hand stock. This trend underscores the growing importance of flexible, sustainable work environments. To attract employees back to the workplace, tenants increasingly seek properties with on-site amenities such as cafés, restaurants, gyms, shower facilities and bike storage.

Despite the city’s continued attractiveness to businesses, the number of office deals in the first quarter of 2025 dropped significantly, with just four deals compared to 18 in Q1 2024. This decline can be attributed to several factors, including ongoing economic uncertainty in the UK, a limited number of lease events in the local market, and broader global instability.

Nonetheless, Kirkby Diamond’s efforts are yielding positive results. At CBXii in the city centre, space has been let to a multi-national branded hat corporation, with a further 6,500 sq ft placed under offer to another multinational occupier currently based in Milton Keynes. Additionally, we have placed 9,000 sq ft under offer at an office building in Knowlhill, again, to a large multinational corporation. This reinforces the appeal of good quality buildings that offer facilities for tenants.

Investment:

From an investment perspective, Milton Keynes presents attractive opportunities. The city’s growth, strong rental yields, and excellent transport connections make it an increasingly desirable destination for investors. There is growing demand for sustainable and energy-efficient buildings, and local retail centres continue to attract interest when brought to market.

We recently completed the sale of a £3.5 million mixed-use investment in Bletchley, and terms are close to agreement for a local centre development at Campbell Wharf. The city’s accessibility and relatively affordable pricing further strengthen its investment appeal, despite economic uncertainties.

Industrial:

The industrial sector in Milton Keynes continues to flourish, driven by steady occupier demand. Positioned within the UK’s Innovation Corridor between Oxford and Cambridge, the city’s connectivity and infrastructure enhance its appeal. Rental growth expectations remain strong across both prime and secondary industrial assets, reflecting the sector’s resilience. Unlike the office and retail sectors, industrial supply has remained relatively stable, supporting consistent demand. Although enquiries dipped last quarter for units in the 2,000–6,000 sq ft range, recent activity suggests a rebound in this segment, despite broader economic slowdown.

Retail:

The retail property sector continues to face headwinds, including subdued occupier demand and rising vacancy rates. However, Milton Keynes benefits from strong transport links and proximity to key amenities, keeping it on the radar for potential relocations. Mixed-use developments such as CBXii, are helping to rejuvenate the sector by combining retail, office, and leisure spaces. While the market remains challenging, retail remains a vital part of the city’s commercial landscape.