Across UK commercial property, capital values fell -0.3% in June 2019, according to the latest CBRE UK Monthly Index. This brought Q2 capital value growth to -0.6% and -1.2% for the first half of 2019. Rental values decreased -0.1% over the last month and have fallen -0.1% over the quarter. All property total returns were 1.5% for the first half of the year.

Retail sector capital values decreased -1.1% in June. Overall sector performance was driven by falls of -1.3% in Shopping Centres and Rest of UK High Street Shops. Retail Warehouse capital values decreased in line with the sector average. Over the first half of 2019, capital values decreased ‑5.0%, again pulled down by Shopping Centres (-7.9%) and Rest of UK High Street Shops (‑5.6%). Retail rental values fell -1.8% over the half.

Capital values in the Industrial sector increased 0.2% in June. South East Industrials (0.3%) marginally outperformed Industrials in the Rest of UK (0.2%). Rental values increased 0.3% over the month. The Industrial sector reported an increase in capital values of 1.3% over H1 2019, while rental values increased 1.6%.

Office capital values were flat in June. While capital values in Outer London/M25 Offices increased 0.1%, Central London Office capital values fell -0.1%. Rest of UK Office capital values were flat. In the first 6 months of 2019, Office sector capital values increased 1.0%, pulled up by growth of 1.7% in Rest of UK Offices. Central London Office capital values increased 0.6% in H1. Rental values for the Office sector increased 0.6%.