Press Release
UK all property total returns were 1.2% in Q2 2026, as income returns countered a small decline in capital values
July 9, 2026
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Capital values for UK commercial real estate declined by 0.2% in Q2 2026, according to the latest CBRE UK Monthly Index. While rental values rose by 0.6%, capital values fell because of outward yield movements in some sectors. Performance at an All Property level was underpinned by income returns of 1.4%, leading to total returns of 1.2% being recorded for the quarter.
The Retail sector achieved the highest total returns for the quarter at 1.9%, with capital values increasing by 0.3%. In comparison, Office total returns were 0.8% for Q2 2026, while capital values fell by 0.6% this quarter, driven by Outer London/M25 offices. Offices in the Rest of UK saw values rise, while Central London office values remained flat. Office rental values rose by 0.3% over the quarter.
Industrial total returns in Q2 2026 were 1.0%, supported by income returns of 1.2%. Capital values fell by 0.2% despite rental values rising by 1.0% during the quarter. The decline in Industrial capital values was driven by outward yield movement.
The UK commercial real estate market has continued to deliver reliable income returns to investors despite prolonged economic and political uncertainty. An increase in swap rates impacted real estate debt costs earlier in the quarter, which has contributed to the small fall in values through Q2. However, our 2026 European lender intentions survey shows sentiment improving towards all commercial real estate sectors, and a strong appetite to lend overall. This should support improved investment conditions and performance through the remainder of the year.
CBRE UK Monthly Index Snapshot: Q2 2026
| All Property | Office | Retail | Industrial | |
|---|---|---|---|---|
| Total Return | 1.2% | 0.8% | 1.9% | 1.0% |
| Capital Value Growth | -0.2% | -0.6% | 0.3% | -0.2% |
| Rental Value Growth | 0.6% | 0.3% | 0.6% | 1.0% |
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.