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%.

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.