London,
08
August
2018
|
10:22
Europe/London

UK COMMERCIAL PROPERTY CAPITAL INCREASE 0.1% IN JULY

Across UK commercial property, capital values increased 0.1% in July, according to the latest CBRE UK Monthly Index. Rental values also increased 0.1% over the month.

Retail sector capital values decreased -0.3% in July, pulled down by Rest of UK High Street Shops (-0.7%) and Shopping Centres (-0.5%). For the fourth consecutive month, no Retail subsector reported positive capital growth in July. Rental values fell -0.1% over the month, driven by a fall of -0.4% in Rest of UK High Street Shops.

Capital values in the Industrial sector increased 0.7% over the last month, outperforming the other main sectors. South East Industrials continue to outperform, reporting an increase of 0.8% in July compared with 0.5% in the Rest of UK. Rental values increased 0.2% across the Industrial sector.

Office capital values rose 0.2% in July. There was little regional divergence in performance: Central London Office capital values increased 0.1%, while offices in the Outer London/M25 and Rest of UK markets reported increases of 0.2% and 0.3% respectively. Rental values rose 0.2% overall in the Office sector in July. Central London Office rental values increased in line with the sector average. Rental values in the Rest of UK increased 0.4% in July.

Miles Gibson, Head of UK Research at CBRE
At the All Property level, July’s results matched April’s as the lowest monthly capital growth since October 2016. Despite a steady first half to the year, income driven returns look to be the norm for now in all but the very best performing sectors.
Miles Gibson, Head of UK Research at CBRE