Commercial property values across the country are still significantly below their 2007 high-water marks, but have reportedly risen by 7.9 per cent since the beginning of this year.
Figures from real estate advisory giant CB Richard Ellis (CBRE) have shown a 0.3 per cent rise in all property capital values during September of this year and a 0.8 per cent increase in total returns over the same period.
The company’s recent report on the UK’s commercial property sector makes it clear that investment in and demand for office space in London have been at the heart of upward trends in the overall market.
“UK office markets are being driven by the out-performance in central London offices,” explained CBRE senior analyst Nick Parker.
“This is where investor interest is most focused and where there are still signs of downward yield pressure.”
Taking the UK as a whole, office space was found to be performing better in terms of capital growth and overall returns than any other commercial property sub-sector.
Earlier this month, a report by the Cushman & Wakefield rated London as the best city in the world to do business and Leeds as the place to find the most cost-effective office space deals.
Editor’s notes: In January 2023, CBRE’s commercial property values index showed that, in 2022, UK commercial property capital values decreased by 13.3 per cent overall and that annual total returns were down 9.1 per cent.
This was a sharp contrast to 2021, when commercial property values rose 13.8 per cent, and annual total returns rose 19.9 per cent.
The report cited 2022’s decrease as due to rising interest rates and global economic uncertainty stemming from several events following the pandemic.
In April 2026, CBRE reported that UK all-property capital values were stable in Q1 2026, while total returns were 1.4 per cent.
Its report stated that “Office total returns were 0.3 per cent in March and 0.9 per cent for Q1 2026. Office capital values fell by 0.1 per cent over the month, driven by Outer London/M25 and Central London offices, as offices in the rest of the UK saw values increase by 0.4 per cent in March. Office rental values also rose by 0.3 per cent over the month.”