UK commercial property capital values down 0.2 per cent in July
UK commercial property capital values fell 0.2 per cent in July, according to the latest CBRE UK Monthly Index. Rental values increased 0.1 per cent over the month.
In the retail sector, capital values decreased 0.9 per cent in July, pulled down by Shopping Centres (‑1.3 per cent) and Retail Warehouses (-1.0 per cent). Rental values fell 0.2 per cent over the month, driven by falls in Rest of UK High Street Shops and Shopping Centres, both -0.4 per cent.
Capital values in the Industrial sector increased 0.2 per cent in July, outperforming the other main sectors. South East Industrials continue to outperform the Rest of UK, reporting an increase of 0.3 per cent in July. Capital values in the Rest of UK submarket were flat. Rental values increased 0.2 per cent across the Industrial sector.
Office capital values increased 0.1 per cent in July. Capital values for Central London Offices and Outer London/M25 were flat for the month, while Rest of UK reported marginal growth of 0.1 per cent. Rental values rose 0.2 per cent overall in the Office sector in July. Central London Office rental values increased more than the sector average (0.4 per cent), attributable to 0.5 per cent growth in the West End submarket. Rest of UK Offices reported 0.1 per cent over the month.
Robin Honeyman, Senior Research Analyst, says: “July’s results continue to mirror the trends reported in 2019 so far, with continued downward pressure from the Retail sector pushing All Property capital growth into negative territory.”