It’s Happening

London, 8 October 2026 – The Green Street European Commercial Property Price Index, which tracks pricing across a broad swathe of European commercial property, edged down one percent in the quarter as widening bid yields are weighing on pricing in most CRE sectors. Signals from the bond and equity markets over recent weeks are not encouraging and have already fed through to bidding tents. Consequently, investors have reportedly recalibrated required returns. Prices for industrial (-2.1%), residential (-2.0%), self-storage (-1.9%) and office (-1.7%) are bearing the brunt of the rise in borrowing rates, as mixed fundamentals can’t fully offset the effect of higher cap rates. Conversely, data centres, retail and hotel sectors are holding tight given solid NOI growth.

“The past few weeks offered no reprieve for private investors looking for evidence of bid prices holding firm.” said Marie Dormeuil, Senior Analyst at Green Street. “The combined signals from the equity and debt capital markets have started flashing amber. Investment volumes could still end up settling above last year’s as deals agreed before August close, but incremental price discovery is likely to stall during Q4.”

About the Green Street Commercial Property Price Index

Green Street’s European Market Analytics platform covers 30 of the most liquid European real estate markets across the industrial, office, residential, retail, hotel, self-storage and data centre (9 markets) property sectors. The Commercial Property Price Index is a time series of unleveraged property values across these sectors and markets, and captures the prices at which commercial real estate transactions are currently being negotiated and contracted. Features that differentiate this index are its timeliness, its emphasis on average institutional quality properties, and its ability to capture changes in the aggregate value of the commercial property sector.

About Green Street | Green Street is the leading global provider of actionable commercial Real Assets research, news, data, analytics, and advisory services. For over 40 years, Green Street has delivered unparalleled intelligence and trusted data on public and private markets, helping investors, banks, lenders, and other industry participants optimize investment and strategic decisions. The firm delivers exclusive market information, conclusion-driven insights, and predictive analytics. Today, Green Street’s integrated platform serves more than 4,000 companies across North America, Europe, Australia, and Asia.