Cushman & Wakefield's latest "DNA of Real Estate" report (Q2 2026) confirms that European commercial real estate markets maintained a stable trajectory through the second quarter of the year. Despite persistent geopolitical uncertainty and European Central Bank rate increases, rents across the office, logistics, and retail sectors recorded growth both quarter-on-quarter and year-on-year. The period also brought the first signs of yield decompression in over two years.
Office: Prime CBD Locations Lead the Way
Prime CBD office rents rose 1.2% quarter-on-quarter and 4.5% year-on-year, sustaining the upward trend established in recent quarters. Among the strongest performers were the Benelux countries (up 2.6% QoQ), Germany (up 1.9% QoQ), and the UK and Ireland (up 1.6% QoQ). Rotterdam stood out with a 13.2% quarterly increase, driven by recently completed transactions and elevated asking rents in new developments.
Poland was among the most dynamic office markets in Europe, with prime Warsaw office rents rising more than 8.5% year-on-year.
"Rent growth in the Warsaw office market is concentrated primarily in the best buildings in central locations - both existing and under construction. This reflects limited availability of high-quality space and persistently high construction and financing costs for new projects. Outside the city centre, upward pressure is considerably weaker and more in line with inflation levels. For older office buildings, the ability to compete for tenants on quality, location, and fit-out standard remains the decisive factor."
- Vitalii Arkhypenko, Research Analyst, Cushman & Wakefield
Logistics: Moderate Growth, Balanced Supply
European logistics rents rose 0.6% quarter-on-quarter, extending a run of growth that now spans four consecutive quarters. Annual growth reached 2.4%. Southern Europe (up 2.4% QoQ) and Central & Eastern Europe (up 1.5% QoQ) were the standout regions, with Warsaw recording the strongest quarterly increase at 4.8%, followed by Milan and Rome at 2.9%.
In Poland, logistics rents recorded moderate growth alongside stable yields quarter-on-quarter.
"The stability of logistics rents reflects sustained strong occupier demand, which continues to support rate levels in prime locations. Developers' cautious approach to new investment and limited speculative development activity are also helping to maintain supply-demand balance. At the same time, the scope of tenant incentives continues to influence final lease terms."
- Szczepan Gowin, Head of Industrial & Logistics Agency, Cushman & Wakefield
Retail: High Streets Broadly Stable
Prime high street retail rents were largely unchanged, rising just 0.2% quarter-on-quarter and 3.0% year-on-year. Growth moderated noticeably compared to previous quarters, with Stockholm (up 2.3%) and Madrid (up 2.0%) among the few markets recording meaningful increases. No market registered a decline. Retail yields held steady at 4.77%, tightening four basis points year-on-year.
