Capital values for commercial real estate declined by 1.1 per cent in November 2023, according to the latest CBRE UK Monthly Index. Rental values increased by 0.4 per cent, while total returns were -0.6 per cent throughout the month.

Retail capital values declined by 1.9 per cent throughout the month. This was driven predominantly by Retail Warehouses recording a 2.2 per cent decline, although both Shops in the South East and Rest of UK Shops posted a large decline (-1.6 per cent). Shopping Centre capital values also fell by 0.8 per cent. Retail rental values rose by 0.2 per cent in November. Both Retail Warehouses and Standard Shops saw rental values increase by 0.2 per cent, while Shopping Centre rents remained unchanged in November. Total returns for the Retail sector were -1.3 per cent for the month.

Office sector capital values fell by 1.7 per cent in November. Rest of UK offices posted the largest decline (-2.4 per cent) in capital values for the month, while Central London capital values posted the smallest decrease (-0.8 per cent). Outer London/M25 offices also saw capital values fall by 1.6 per cent. Office rental values increased by 0.1 per cent over the month. Central London saw rental values increase by 0.1 per cent and Rest of UK office rental values grew by 0.2 per cent. Outer London/M25 office rental values remained unchanged for the month. Total returns for the Office sector were -1.7 per cent for November.

Industrial capital values decreased by 0.4 per cent throughout November. Rest of UK Industrials posted the largest capital value fall of 0.6 per cent, while Industrials in the South East saw capital values fall by 0.3 per cent. Rental values rose by 0.7 per cent. Industrials in the South East recorded rental value growth of 0.7 per cent and Industrials in the Rest of UK where rental values grew 0.8 per cent. Total returns for the Industrial sector were -0.1 per cent throughout November.