Across UK commercial property, capital values increased 0.1% in July, according to the latest CBRE UK Monthly Index. Rental values also increased 0.1% over the month.
Retail sector capital values decreased -0.3% in July, pulled down by Rest of UK High Street Shops (-0.7%) and Shopping Centres (-0.5%). For the fourth consecutive month, no Retail subsector reported positive capital growth in July. Rental values fell -0.1% over the month, driven by a fall of -0.4% in Rest of UK High Street Shops.
Capital values in the Industrial sector increased 0.7% over the last month, outperforming the other main sectors. South East Industrials continue to outperform, reporting an increase of 0.8% in July compared with 0.5% in the Rest of UK. Rental values increased 0.2% across the Industrial sector.
Office capital values rose 0.2% in July. There was little regional divergence in performance: Central London Office capital values increased 0.1%, while offices in the Outer London/M25 and Rest of UK markets reported increases of 0.2% and 0.3% respectively. Rental values rose 0.2% overall in the Office sector in July. Central London Office rental values increased in line with the sector average. Rental values in the Rest of UK increased 0.4% in July.
Miles Gibson, Head of Research at CBRE UK, said: “At the All Property level, July’s results matched April’s as the lowest monthly capital growth since October 2016. Despite a steady first half to the year, income driven returns look to be the norm for now in all but the very best performing sectors.”