London – December 8, 2022 – Capital values decreased 5.5% across all UK Commercial property in November 2022, according to the latest CBRE Monthly Index.

Throughout the month, rental value growth was 0.5%. Total returns were -5.1%.

In November, Retail capital values declined 4.4%. This was driven by Shops in the Rest of UK (-5.8%) and Retail Warehouses (-4.6%). In November, rental value growth was flat for the Retail sector. Standard Shops reported a small rental value decline (-0.1%), while Retail Warehouse rental values increased by 0.1%. Total returns were -3.9% for the Retail sector in November.

Office sector capital values fell 4.5% in November. Central London offices again reported smaller capital value declines compared with Outer London/M25 offices (-4.1% and -5.9% respectively). Rest of UK office capital values also decreased 4.6%. Rental values for the Office sector increased 0.6% in November. Central London was the primary driver of rental growth with 0.7%, while Outer London/M25 and Rest of UK offices posted positive rental growth but below the sector average. Over the month, total returns were -4.1% for the Office sector.

In November, the Industrial sector posted the highest capital value decrease at -7.8%. Industrials in the South East continue to report greater falls in capital value growth (-8.8%), compared with Industrials in the rest of the UK (-5.9%). Industrial rental value growth was 1.0% for October. Industrials in the South East led rental growth for the sector with a 1.1% increase in November. For the month, Industrial total returns were -7.4%.