Majority of market sectors reported stable rents and yields in Q1 2025. For all sectors at the European level rents remained positive on a quarterly and annual basis. Yields edged inwards for a second quarter in a row with the European average yield below Q1 24 levels for all sectors.
Office
Prime rental growth in the office sector remained positive at 1.1% per annum, broadly in line with the 1.2% growth in Q4 2024. Nearly 40% of markets tracked reported growth q/q, more than any other sector. Annual growth remained robust at 4% per annum, with the strongest growth over the quarter in the UK and France. Yields moved in 2bps to 5.44% and sit 3bps below their level a year ago.
Retail
The high street continued to blossom. Prime high street rents grew 1.5% over the quarter, the highest of all sectors, pushing annual growth to 4.1%, marginally ahead of the office sector. A quarter of retail markets saw growth led Benelux, the UK and France. Prime yields edged in again with the European average now at 4.83%, 3bps lower over the quarter and 7bps below their level a year ago.
Logistics
Prime logistics markets benefitted stronger rental growth with rents up 1% over the quarter at the European level, marginally ahead of the 0.8% seen in Q4 2024, with rents 3.1% above their level a year ago. The average prime yield edged in 1bp to 5.26%, 6bps below their level a year ago.
