UK commercial property capital values decrease -0.1% in April

Capital values across UK commercial property fell by -0.1% in April 2019, according to the latest CBRE Monthly Index. This is the sixth consecutive month of negative capital value growth at the All Property level. Rental values were flat over the month.

Retail sector capital values decreased -0.6% in April. Sector results were pulled down by Shopping Centres where capital values fell -1.0%. Retail Warehouse reported capital values falling -0.4% over the month. Rental values declined -0.3% across the Retail sector in April.

The Office sector reported capital values increasing 0.3% over the last month. While capital values were flat for the Outer London/M25 submarket, both Central London and Rest of UK Offices reported growth in line with the sector average. Rental values also increased 0.3% for the sector.

Having continuously outperformed the other main sectors for over two years, Industrials were not the best performer for the second consecutive month in April, reporting capital growth of just 0.1%. Industrials in the South East reported an increase in capital values of 0.2% over the month. Capital values were flat for Rest of UK Industrials. Rental values increased 0.2%.

Robin Honeyman, Research Analyst at CBRE UK
For the second month in a row, the Office sector has outperformed the Industrial sector. Although based on only two months of results, this could signal a changing of the guard after over two years of Industrial outperformance. The Retail sector continues to struggle.
Robin Honeyman, Research Analyst at CBRE UK