Newly released figures from CoStar show average U.K. office yields fell sharply in the first quarter of 2025, tempting more investors to allocate capital into the sector.
Based on a three-period trailing average, the firm said the transaction-based office yield fell by 40 basis points to 8.2 percent in the first three months of 2025. This fall is a continuation of a descent that started after the average U.K. office yield peaked at 8.9 percent in the third quarter 2024.
Office yield compression was at its most pronounced beyond central London. Average office yields outside the capital reached the 10-percent mark for the first time since 2012 in 2025 but fell sharply in the first quarter of 2025 as they dropped to an average of 8.1 percent. Prime yields have also hardened in some regional cities. A property on George Street in Edinburgh sold at a 6.4 percent yield in February 2025, and one of Brighton’s best and newest office buildings — the Brinell Building on Stat
