• CoStar analysis showed the office yield gap narrowing between London and the UK’s Big Six regional markets as investor sentiment improved in Q1 2026.
• London’s transaction-based office yield rose to 6.5% on a three-quarter trailing average, up from 6% in Q4 2025; the London-versus-regions spread tightened to 370 basis points from 480 basis points two quarters earlier.
• Central London office yields increased to 5.7%; Big Six office yields compressed to 8.8%, narrowing the central London-Big Six spread to 310 basis points from 430 basis points two quarters earlier.
• Regional office yields eased to 10.3% from a 12-year high at end-2025, remaining elevated despite the pullback.
• Retail yields held at 7.1%; industrial yields fell to 6.9%, ending the increases seen through 2025.

Disclaimer: This news brief was created by Public Technologies (PUBT) using generative artificial intelligence. While PUBT strives to provide accurate and timely information, this AI-generated content is for informational purposes only and should not be interpreted as financial, investment, or legal advice. CoStar Group Inc. published the original content used to generate this news brief via Business Wire (Ref. ID: 202605220300BIZWIRE_USPR_____20260522_BW576099) on May 22, 2026, and is solely responsible for the information contained therein.