The typical steady start to the year for UK commercial property continued into February with capital values increasing 0.2% on average over the month, according to the latest CBRE Monthly Index. Rental value growth was 0.2% at the All Property level in February.

Retail capital values decreased -0.1% in February, pulled down by falls of -0.2% in Rest of UK High Street Shops and -0.8% in Shopping Centres. Rental vales were flat over the month. While Rest of UK High Street Shops and Shopping Centres both reported rental value falls of -0.1%, Retail Warehouse rental values increased 0.1%.

Capital values in the Office sector increased 0.2% over the last month, with Central London and Outer London/M25 increasing 0.3% and 0.4% respectively. Rest of UK Office capital values were flat in February. Rental values increased 0.1% across UK Offices. All sub-markets, including Central London, reported increases in line with the office sector average. Central London rental value growth was positive for the first time since March 2017 in February.

The Industrial sector again provided a boost to overall results, with capital growth well ahead of the other main sectors at 0.8% for the month. As with previous performance, capital growth was strongest in the South East, increasing 1.0% compared with growth of 0.4% in the Rest of UK. Rental values increased 0.4% in February across the Industrial sector.

Miles Gibson, Head of UK Research at CBRE
UK commercial property continued its traditionally steady start to the year in February. Results for 2018 so far look solid with the Industrial sector lifting overall performance figures
Miles Gibson, Head of UK Research at CBRE