Range-Bound Market

London, 6 July 2026 – The Green Street Commercial Property Price Index, which measures pricing of a broad swathe of European commercial properties, tilted marginally lower in the second quarter, eroding small gains in the early months of the year. The war-induced energy shock proved temporary and so CRE fundamentals are holding steady, albeit the European investment market for B/B+ quality assets paused in Q2. The rise in borrowing rates since Feb-26 has widened the bid-ask spread and is echoed in expanding cap rates across sectors in the U.K., as well as in the German retail and self-storage sectors. Across property types, pricing performance diverged most between data centre (up) and self-storage (down). The latter has seen the most negative revisions this quarter, as bidding activity has been hurt by higher financing costs and diminished near-term organic growth expectations, exacerbated by a pickup in supply across many key European markets.

“European economic growth prospects for the second half of ’26 are marginally improving each week the price of oil drifts lower.” said Marie Dormeuil, Senior Analyst at Green Street. “The recent interest rate volatility seems to be quietening down and should it persist, investment volumes are set for a robust bounce back in 2H. Meanwhile, pricing is unlikely to move materially up, or down, by the end of ’26 taking into account our underwriting work as well as available capital market signals.”

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 the public and private Real Assets 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.