NOVEMBER UK COMMERCIAL PROPERTY CAPITAL GROWTH HIGHEST FOR 2016
UK commercial property capital values increased faster in November than any other month of 2016, according to the latest CBRE Monthly Index. Rental values increased slightly over the month.
Capital values grew by 0.5% in November and total returns rose for the third consecutive month, increasing from 0.5% in October to 0.9% across the UK in November.
Continuing its post-referendum trend, the Industrial sector outperformed all other sectors in November with capital values increasing 1.2%. Also performing strongly, capital values in the Office sector rose by 0.4% over the month, the highest of 2016. Industrials also outperformed all other sectors in terms of total returns, recording 1.7% for the month.
UK commercial property rental values remained relatively stable in November. Rental values in the Retail sector held firm over the month while the Office sector saw a slight increase of 0.2%. The 0.3% increase in Industrial sector rental values was driven by South East industrials, which increased 0.4%.
November’s Monthly Index shows that the commercial property market continues to surprise on the upside, with almost every indicator at its strongest reading since the beginning of the year. At the all-property level, rental growth has not dipped into negative territory at all this year. However, monthly indicators can be volatile and there remain very significant and uncharted waters ahead.