Capital values increased 0.2% across all UK Commercial property in February 2021, according to the latest CBRE Monthly Index. Over the month, rental values were unchanged at 0.0%. Total returns were 0.7%.

The Retail sector reported a -0.6% fall in capital values over February. This was in line with the decline in January 2021 but was a smaller fall than in any month of 2020. Retail Warehouses performed better than the sector average with capital growth of 0.0%. February was the first month that the subsector did not record a fall in values since February 2018. Retail rental values declined -0.5% over the month, for High Street shops in the South East the fall was only -0.1%. Retail total returns were 0.0% in February.

Office sector capital values were flat over the course of the month. City Offices performed better than sector average, posting growth of 0.1%. Conversely, Outer London and M25 Offices was the weakest performing Office sub-sector with values decreasing -0.9%. Office rental values rose by 0.1% in February, driven by Central London Offices where values also increased 0.1%. Office total returns were 0.4% for the month.

Industrials returned to stronger capital growth in February following a slight dip in the pace of growth in January. Over the month, Industrial capital values increased 1.3%. For the second consecutive month Industrials in the rest of the UK outperformed the sector average, reporting a 1.7% rise in values, compared with 1.1% in the South East. Over February, Industrial sector rental values increased 0.5%, growth was slightly less in the rest of the UK at 0.4%. Industrial total returns for the month were 1.7%.