Capital values fell -0.1% across all UK Commercial property in January 2021, according to the latest CBRE Monthly Index. Over the month, rental values were unchanged at 0.0%. Total returns were 0.4%.

The Retail sector started the new year with continued decreases in values. However, despite a continued national lockdown, the scale of decline in January was less than during much of 2020. Over the month, capital value growth was -0.6%, the smallest fall since May 2019. High Street Shops performed better than the sector average with capital values falling only -0.2%. Retail rental values declined -0.2% in January, the smallest decline in 12 months. Retail total returns were 0.0% for the month, the first month not to post negative returns since April 2020.

The Office sector posted capital value growth of -0.3% over the month. Within this, Central London Offices performed slightly better posting a decrease of only -0.1%. In contrast, Outer London and M25 Offices reported the greatest decrease of -0.7%. Average Office rental values were stable at 0.0% in January, although Central London Offices saw values increase 0.1%. Office total returns were 0.1% for the month.

After a very strong end to 2020 the Industrial sector has seen slower growth in January 2021. Over the month Industrial capital values rose 0.6%. Industrials in the rest of the UK reported slightly stronger growth at 0.7%. Over January rental values increased 0.1%, both Industrials in the South East and the rest of the UK increased by sector average. Industrial total returns for the month were 1.0%.