Capital values increased 0.5% across all UK Commercial property in March 2021, according to the latest CBRE Monthly Index. Over Q1 2021 capital growth was 0.7%. In March, rental values rose 0.1% bringing quarterly rental growth to 0.1%. Total returns for the month were 1.0%.

The Retail sector reported a -0.8% fall in capital values in March and -2.0% fall over Q1 2021. In March Retail Warehouses outperformed with capital growth of 0.6%, the greatest increase in values for the sector since May 2017 and the strongest monthly growth for any retail subsector in over three years. Retail rental values declined -0.4% over the month taking the quarterly decrease to -1.0%. Again, Retail Warehouses pulled up the sector average in March posting an increase in rental values of 0.1%. Retail total returns were -0.1% in March.

In March Office sector capital values fell marginally at -0.1%, taking growth in Q1 2021 to -0.3%. Capital values for Central London Offices were unchanged over the month. Outer London and M25 Offices was the weakest performing Office sub-sector over Q1 with values decreasing -1.7%. In contrast, capital values for West End Offices were unchanged over the quarter, it was the only Office subsector not to record a decrease in values. Office sector rental values were unchanged in March, making quarterly growth 0.2%. Office total returns were 0.3% in March.

Industrials reported very strong capital growth in March at 2.6%. Industrials in the rest of the UK posted record breaking growth at 2.6%, the greatest monthly increase in values for the subsector in the history of the index. Quarterly capital growth for the Industrial sector was 4.6%. Over the quarter Industrials in the Rest of the UK reported growth of 5.1% compared to 4.3% in the South East. Rental growth for the Industrial sector was 0.8% in March and 1.4% over Q1 2021. Industrial total returns were 3.0% in March.