This commentary provides an overview of UK commercial property market conditions as at January 2026.
Indicative Prime Investment Yields
| Sector | Location / Asset Type | Indicative Prime Yield |
| Offices | London West End (Prime Core) | 3.75% – 4.00% |
| Offices | London City (10-year income) | c. 5.25% |
| Offices | Major Regional Cities | c. 6.50% |
| Retail | Bond Street (Prime) | 2.75% – 3.00% |
| Retail | Prime High Street Towns | c. 6.50% |
| Retail | Regional City High Streets | c. 7.00% |
| Retail | Open A1 Retail Parks | 5.25% – 5.50% |
| Retail | Regional Shopping Centres | 7.25% – 7.50% |
| Industrial | Prime Logistics (20 yrs NIY) | c. 5.00% |
| Industrial | Prime Logistics (15 yrs) | c. 5.25% |
| Industrial | Good Modern Estates (UK) | 5.00% – 5.25% |
Transaction Volumes and Market Liquidity
UK commercial investment volumes have shown early signs of stabilisation. Trailing twelve-month investment volumes to Q3 2025 were approximately £52.6 billion across around 1,566 transactions. Office, industrial, and retail sectors each accounted for a significant proportion of total activity, although deal flow remains highly selective.
Valuation Considerations
Prime assets continue to attract the strongest demand and firmest pricing, particularly where income is secure and assets meet modern ESG and occupational requirements. Secondary assets typically require greater risk adjustment, reflecting void risk, capital expenditure, and reletting considerations. Yield spreads between prime and secondary assets remain wide across office, retail, and industrial sectors.
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