UK all property capital values were stable over Q1 2026, while total returns were 1.4%, driven by income returns

Capital values for UK commercial real estate remained flat throughout March, while rental values continued to increase according to the latest CBRE UK Monthly Index. Rents rose 0.3% over the month, and total returns were 0.5%. Capital values remained flat over Q1 2026, meaning that quarterly total returns at 1.4% was driven by income returns. Rental values increased by 0.4% over the quarter.

Retail total returns for March were 0.5%, driven by income return, as capital values remained unchanged for the month. Retail rental values increased by 0.3%, driven by Shopping Centres which saw rents rise by 1.0% over the month. Retail total returns for Q1 were 1.7%, which was the highest of all the sectors.

Office total returns were 0.3% in March and 0.9% for Q1 2026. Office capital values fell by 0.1% over the month, driven by Outer London/M25 and Central London offices, as offices in the Rest of UK saw values increase by 0.4% in March. Office rental values also rose by 0.3% over the month.

The industrial sector posted the highest month-on-month total return in March at 0.6%. This meant quarterly total returns for the sector were 1.6%. Performance was consistent across industrial segments, as both Industrials in the South East and Industrials in the Rest of UK saw capital values rise by 0.2%, and rental values increase by 0.3%.