Capital values increased 1.1% across all UK Commercial property in May 2022, according to the latest CBRE Monthly Index. Over the month, rental values rose 0.5%. Total returns were 1.5%.

Capital values for the Retail sector increased 0.8% over the month. Capital value growth continues to be driven by Retail Warehouses with capital values increasing 1.2%.  Shops in the South East performed slightly better than Shops in the rest of the UK reporting a capital value growth of 0.4% and 0.1% respectively. Rental values for the Retail sector increased 0.1% over the month.  Rental value growth was pulled down by Shops in the rest of the UK which reported a decline of -0.3% in May. Shopping Centres reported a rental value growth of 0.1%, this represents the first positive increase in values since March 2018. Rental growth for Retail Warehouses remained flat over the month. Total returns for the Retail sector were 1.3%.

The Office sector posted capital value growth of 0.7% over the month. Capital value growth was driven by Outer London and M25 Offices (0.8%) and Offices in the rest of the UK (1.0%).  Capital values for Central London Offices increased 0.4%, although this figure was impacted by negative capital growth for City Offices (-0.2%). In May, rental values increased 0.2% for the Office sector. Rental growth was predominantly driven by Rest of UK Offices which reported growth of 0.5%. Total returns for the sector were 1.0%.

In May, capital value growth continued for the Industrial sector, albeit at a reduced rate of 1.3%, down from 1.9% in April and 3.0% in March.  Industrials in the South East performed marginally better than Industrials in the rest of the UK with values increasing 1.4% and 1.3% respectively. Rental values increased 0.8% over the month. Industrial total returns were 1.6% in May.