Press Release
UK all property capital values declined over Q3 2026, driven by outward yield movement
October 8, 2026
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Capital values for UK commercial real estate decreased by 0.9% over Q3 2026, according to the latest CBRE UK Monthly Index. Rental values increased by 0.5% over the quarter, and total returns were 0.5%.
The Retail sector posted the highest total returns for the quarter at 1.8%, with capital values increasing by 0.2%. Retail rental values increased by 0.5% over this period, driven by Retail Warehouses which saw rents rise by 0.8%.
Office total returns were 0.2% for Q2 2026. Office capital values fell by 1.1% over the quarter, driven by Outer London/M25 and Rest of UK offices, as Central London office values remained flat. Office rental values also rose by 0.7% over the quarter.
Industrial total returns in Q2 2026 were 0.2% and rental values increased by 0.4%. Capital values declined by 0.9% over the quarter, driven by outward yield movement.
UK commercial real estate faced a more challenging quarter, with capital values falling as yields moved outwards in response to the macroeconomic environment. While economic growth has been resilient so far this year, increases in government bond yields and borrowing costs over the last two months have impacted real estate performance.
CBRE UK Monthly Index Snapshot: Q2 2026
| All Property | Office | Retail | Industrial | |
|---|---|---|---|---|
| Total Return | 0.5% | 0.2% | 1.8% | 0.2% |
| Capital Value Growth | -0.9% | -1.1% | 0.2% | -0.9% |
| Rental Value Growth | 0.5% | 0.7% | 0.5% | 0.4% |
Read the CBRE UK Monthly Index
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE: CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm and a premier provider of critical infrastructure services. The company has more than 155,000 employees serving clients in more than 100 countries. CBRE serves clients through four business segments: Advisory (leasing, sales, debt origination, mortgage servicing, valuations); Building Operations & Experience (facilities management, property management, flex space & experience, critical infrastructure); Project Management (program management, project management, cost consulting); Real Estate Investments (investment management, development). Please visit our website at www.cbre.co.uk.