UK commercial property capital values increase 0.1% in August
Across UK commercial property, capital values increased 0.1% in August, according to the latest CBRE UK Monthly Index. Rental values were flat over the month.
Capital values in the Industrial sector increased 0.7% in August, outperforming the other main sectors. South East Industrials continue to outperform those in the Rest of UK, with capital values increasing 0.8% over the month in the South East compared with a 0.6% increase in the Rest of UK. Rental values increased 0.2% across the Industrial sector.
Retail sector capital values fell -0.4% in August, a further fall from the -0.3% reported in July. For the fifth consecutive month, no Retail subsector reported positive capital growth last month. August’s results were pulled down by Retail Warehouses (-0.5%) and Rest of UK High Street Shops (-0.4%). Rental values decreased -0.1% over the month.
Capital values in the Office sector increased 0.2% over the month. In August capital values were flat in Central London while Office capital values in the Outer London/M25 and Rest of UK markets rose 0.5% and 0.3% respectively. Rental values increased 0.1% across the sector last month. Central London rental values were flat. Rental values in Outer London/M25 increased 0.2% and 0.1% in the Rest of UK.

Investors returning from their summer holidays should not have too many surprises awaiting them. As has been the case all year, Industrials continue to out-perform, whilst Retail continues to be challenging, with retail capital values at their lowest since December 2016.