London,
07
September
2017
|
10:41
Europe/London

INDUSTRIALS BOOST UK PROPERTY CAPITAL VALUE GROWTH TO 0.4% IN AUGUST

UK commercial property capital values increased 0.4% in August 2017 according to the latest CBRE Monthly Index, with the Industrial sector boosting the national average once again. Rental value growth was 0.2% across All UK Property over the month, up from July’s 0.1%.

Industrial capital value growth again outperformed the other main sectors in August with an increase of 0.8%. South East Industrials grew slightly faster than the Rest of UK with an increase of 0.9% compared with 0.7%. Rental value growth for the Industrial sector was 0.4%. South East Industrials pulled up the sector average with a rise of 0.6% in August.

The Retail sector recorded capital value growth of 0.3% in August, up from 0.2% in the previous month. Rest of UK Standard Shops and Retail Warehouses pulled up the national average with growth of 0.3% and 0.4% respectively. Retail rental values increased by 0.1% over the month, with South East Shops outperforming the other retail subsectors (0.2%).

Capital values increased by 0.3% in the Office sector over the month of August. Offices in Outer London/M25 and the Rest of UK performed above the national average (0.7% and 0.4% respectively). While Central London Office rental values were stable overall in August, rental values in the West End & Mid Town decreased -0.1%.

Miles Gibson, Head of UK Research at CBRE
Overall in August, performance in the main sectors was steady compared with July’s results. It is a traditionally slow time of the year for commercial real estate. The Industrial sector continues to outperform the other main sectors as it has done for most of 2017.
Miles Gibson, Head of UK Research at CBRE