Gradual recovery for UK commercial real estate values continues in April 2025

Capital values for UK commercial real estate rose by 0.2% in April according to the latest CBRE UK Monthly Index. This continued the pattern of small but steady increases in capital values seen throughout the first quarter of the year. Rental values also rose by 0.2% in April, while total returns for the month were 0.7%.

The Retail sector recorded the highest month-on-month total return for the fourth consecutive month, at 0.8% for April. This reflected an income return of 0.6% together with a capital value increase of 0.2%. All retail segments saw capital values rise, with Retail Warehouses posting the highest increase (0.3%), followed by Standard Shops and Shopping Centres (0.2%). Meanwhile, Retail rental values increased by 0.3% in April.

Total returns for the office sector were 0.6% in April. Office capital values increased by 0.2% overall, with Central London capital values recording a larger rise, at 0.7%. Rest of UK Office capital values increased by 0.1%, but Outer London/M25 Office capital values fell by 0.2% in April. However, all office segments saw an increase in rental values, with the office sector overall recording rental value growth of 0.2% in April.

The Industrial sector recorded total returns of 0.6% for April. Industrial capital values increased by 0.2% and Industrial rental values also increased by 0.2%. As was the case in March, there was little variation in either capital value or rental value growth between South East Industrials and Rest of UK Industrials.