UK COMMERCIAL PROPERTY RENTAL VALUES STABLE IN OCTOBER, CAPITAL VALUES RISE SLIGHTLY
Commercial property rental values across the UK remained stable in October, while capital values increased slightly for the first time since the EU Referendum, according to the latest CBRE Monthly Index.
October saw slight growth in capital values of 0.1% and continues to suggest an overall dissipation of the Brexit effect. Mirroring this trend, total returns rose from 0.3% in September to 0.5% across the UK in October.
While capital values in the Office and Retail sectors remained flat during October, the Industrial sector contributed to overall growth with a rise of 0.2% in capital values over the month. Industrials also outperformed all other sectors in terms of total returns, recording 0.7% for the second consecutive month thanks to strong occupier demand and limited supply.
Rental values were stable for the UK’s commercial property market in October. Both the Retail and Industrial sectors saw slight increases in rental values of 0.1% over the month, while rental values fell by 0.1% in the office sector. South East shops drove the increase in the Retail sector, recording a 0.2% increase in rental values for the second consecutive month. The rest of UK Industrials also recorded a 0.2% increase and drove the overall increase seen in the Industrial sector.
This month’s results suggest continuing stability within the market in October. Occupiers and investors continue to take stock of the current conditions but many sectors remain resilient to Brexit-related uncertainty for now