Coventry office sales hit £60m in 2025, report shows

Growth in high-tech sectors drove office investments in the city to a four-year high last year, according to new figures from CoStar.

According to the real estate analytics company, transactions in the city totalled around £60m last year, around 20% above the five-year average and trebl last year’s figure.

The firm say the increase reflects a targeted shift by investors towards assets let to tenants in high-technology sectors, particularly those aligned with the region’s established automotive and engineering base – with key transactions underpinned by electric vehicles, digital engineering and advanced manufacturing firms.

The largest transaction was Hortons’ £12.1m acquisition of a 12.8-acre research campus in Leamington Spa, fully let to Ricardo plc, now part of WSP. At its time of sale in December, the three-building site was let on a lease with 11 years unexpired and inflation-linked uplifts.

The deal reflected a net initial yield of 7.2%, with a reversionary yield of 8.5% anticipated at the next rent review in 2027.

Shelborn’s November acquisition of the Aura Building, also in Leamington Spa, was part of a £15 million deal with Tritax. The 75,000-square-foot building is let to Facebook parent company Meta and Tata Technologies, a subsidiary of Indian multinational group Tata Motors that focuses on product engineering and software development.

The transaction highlights the appeal of Leamington’s “Silicon Spa” digital cluster.

In the first half of the year, value-add specialist David Samuel Properties acquired the Beech Building at Ansty Park for £13 million, reflecting a 12.1% yield. The 66,000-square-foot office is let to Swedish electric vehicle group Polestar on a 15-year lease expiring in 2039.

Although the Swedish firm has been consolidating its footprint, it reported a sharp jump in sales last year, helped by its recent strategy of focusing on Europe.

CoStar says key institutions such as the National Automotive Innovation Centre at the University of Warwick and the MIRA Technology Park in Nuneaton have played a central role in the area’s transition. NAIC, a £150 million joint venture between Jaguar Land Rover, Tata Motors and WMG, focuses on R&D in battery systems, connected vehicles and sustainable propulsion, while MIRA hosts over 30 engineering and mobility firms and is a key testing and validation hub for the automotive sector.

The region is also a focal point of the West Midlands Investment Zone, with the proposed Coventry & Warwick Gigapark expected to support the UK’s battery manufacturing ambitions. These developments are likely to contribute to further clustering, attracting global occupiers and creating demand for high-tech facilities.

“Recent investment activity, particularly the late-year transactions, suggests investors are increasingly willing to underwrite occupational risk when supported by sector tailwinds and long-term regional growth prospects,” said a spokesperson for CoStar.

“With further infrastructure investment and occupier demand expected to continue, Coventry is likely to remain on the radar for investors targeting innovation-led office assets.”