Across UK commercial property, capital values increased 0.4% in October 2017, according to the latest CBRE Monthly Index. Once again, the national average was pulled up by the continuing strong performance of the Industrial sector. Rental values increased 0.1% over the month.

Capital values in the UK’s Office sector increased 0.4% in October. Central London, Outer London/M25, and Rest of UK offices all reported capital value increases in line with the national average. However, within Central London there was a divergence between the two submarkets. West End & Midtown reported an increase of 0.6% in capital values while City office capital values fell by -0.1%, the second consecutive month of decreasing capital values. Rental values increased 0.1% across the sector. Central London rental values were flat in October, while the Outer London/M25 and Rest of UK markets reported increases of 0.1% and 0.2% respectively.

The Retail sector recorded capital value growth of 0.1% in October. Retail Warehouses slightly outperformed the other subsectors with growth of 0.2%. Rental values across the Retail sector decreased -0.1% over the month. High Street Shops in the South East outperformed the rest of the sector, reporting rental value growth of 0.2%. Retail Warehouse and Shopping Centre rental values decreased -0.1% and -0.2% respectively.

Industrial capital growth again outperformed the other main sectors in October, increasing 1.1% over the month. South East Industrials slightly outpaced the Rest of UK with an increase of 1.3% compared with 0.9%. Rental value growth in the Industrial sector was 0.4%, with the South East again slightly outperforming the Rest of UK (0.4% and 0.3% respectively).