Across UK commercial property, capital values fell -0.2% in August, according to the latest CBRE UK Monthly Index. Rental values increased 0.1% and total returns were 0.3% for the month. Once again, solid office and industrial performance was more than outweighed by negative retail returns.
Capital values in the Industrial sector increased 0.2% in August. South East Industrials continue to outperform Rest of UK, with capital values increasing more than the sector average at 0.3% for the month, while the Rest of UK was flat. Rental values across the sector increased 0.3% and total returns were 0.6% for the month.
Retail sector capital values fell -1.0% in August. with Retail Warehouses (-1.3%). UK High Street Shops (-0.7%) and Shopping Centres (-0.9%) both performed better than the sector average. Across the sector, rental values were down -0.4% and total returns were -0.5% for the month.
Capital values in the Office sector increased 0.2% over the month. Central London Office capital values increased 0.1%, while in the Outer London/M25 and Rest of UK submarkets capital values increased 0.2% and 0.3%, respectively. Rental values increased 0.5% across the office sector last month. Central London rental values saw above average growth at 0.6%. Rental values in Outer London/M25 increased 0.2% and 0.3% in the Rest of UK.
Robin Honeyman, Research Analyst at CBRE UK, said: “At a traditionally slow point in the commercial real estate calendar, capital growth for the Industrial and Office sectors remains robust, whilst retail woes continue to impact at an All Property level.”