The average net initial yield for commercial property in the UK is 8.7% as of 2025.

Up 10% in the last 12 months, the average NIY (Net Initial Yield) of all types of commercial property in the UK topped 8.7% – sourced EG Radius

Average Yield

The average yield of commercial property in the UK rose 10% in the trailing 12 months, to 8.7%.

Economic uncertainty, weakened demand and rising interest rates seems to have spelled and increase of yields on commercial property transactions this last year.

Investors repricing the risk of the current climate has pushed yields higher as many take to the sidelines and eagerly await some further stability.

The increase to 8.7% suggests a period of property market repricing, which could create challenges for current owners but opportunities for new investors. If you’re considering acquisitions, focusing on strong tenant covenants and resilient locations would be key.

Leading commercial property consultants, Shepherd Commercial have provided this blog.