Press Release
All sectors post capital value increases in H1 2025, with total returns highest in Retail and Industrial
July 9, 2025
Capital values for UK commercial real estate rose by 0.2% in June according to the latest CBRE UK Monthly Index. Rental values rose by 0.1% over the month, and total returns were 0.6%. The results for June continue the theme of steady increases in capital and rental values seen throughout H1 2025. Capital and rental values have increased by 1.4% and 1.6%, respectively, during H1, while total returns have been 4.2%.
The Retail sector recorded the highest total returns for June, at 0.8%. Retail total returns continue to be driven by income return, but capital values still rose by 0.2% month-on-month. Standard Shops and Shopping Centre capital values increased by 0.3% in June, while Retail Warehouse capital values rose by 0.2%. Retail rental values increased by 0.2%.
Office total returns were 0.6% in June. Office capital values rose by 0.1% overall, with Central London capital values increasing by 0.9%. Outer London/M25 Office values increased by 0.1%, but Rest of UK Office values fell by 0.5% in June. Office rental values rose by 0.5% over the month, with both Central London and Outer London/M25 Offices recording rental growth of 0.5%.
Industrial sector total returns were 0.6% for June. Industrial capital values rose by 0.2% across both the South East and Rest of UK segments. Rental values for the sector increased by 0.3% in June, driven by Rest of UK Industrials.
The half year results indicate a gradual, but resilient recovery in UK commercial real estate. All sectors are now seeing increases in capital and rental values, while yields have remained stable in H1. This should provide more confidence for investors seeking to deploy capital through the remainder of the year. Lenders are also looking to deploy further funds in real estate, as shown by our recent lender intentions survey. More than three quarters of European lenders expect to increase origination activity in 2025, which will support further activity and market recovery as 2025 progresses.
| All Property | Office | Retail | Industrial | |
|---|---|---|---|---|
| Total Return | 0.6% | 0.5% | 0.8% | 0.6% |
| Capital Value Growth | 0.2% | 0.1% | 0.2% | 0.2% |
| Rental Value Growth | 0.3% | 0.5% | 0.2% | 0.3% |
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 (based on 2024 revenue). The company has more than 140,000 employees (including Turner & Townsend 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, digital infrastructure services); Project Management (program management, project management, cost consulting); Real Estate Investments (investment management, development). Please visit our website at www.cbre.com.