Across UK commercial property, capital values increased 0.3% in May, up from the 0.1% reported in April, according to the latest CBRE UK Monthly Index. Rental values were flat in May for the second consecutive month.

Retail sector capital values decreased -0.3% in May, marking 5 months of flat or falling capital growth for the sector. Overall sector performance was driven by falls in capital values of -0.3% in Rest of UK High Street Shops and -0.5% in Shopping Centres. No Retail subsector reported positive capital value growth in May. Retail rental values fell -0.2% over the month, pulled down by South East High Street Shops and Retail Warehouses where rental values fell -0.3% and -0.2% respectively.

Capital values in the Industrial sector increased 1.3% in May. South East Industrials outperformed those in the Rest of UK by some margin, reporting a 1.7% increase compared with 0.7%. Rental values increased 0.3% across the Industrial sector.

Office capital values increased 0.2% over the last month. There was a distinct regional divergence in performance in the Office sector. Capital values in the Outer London/M25 Office market were flat in May while Rest of UK Offices reported an increase of 0.6%. Central London Office capital values fell -0.2% over the last month, with both the City and West End & Midtown submarkets reporting decreases. Rental value performance in the Office sector also showed a regional divergence in May. Overall rental values increased 0.2%. Rental values in Rest of UK Offices increased 0.6% while rental values in Central London and Outer London/M25 both decreased -0.1%.