UK commercial property capital values decreased -0.2% in July, according to the latest CBRE UK Monthly Index. Rental values increased 0.1% over the month.
Capital values in the retail sector decreased -0.9% in July, pulled down by Shopping Centres (‑1.3%) and Retail Warehouses (-1.0%). Rental values fell -0.2% over the month, driven by falls in Rest of UK High Street Shops and Shopping Centres, both -0.4%.
Capital values in the Industrial sector increased 0.2% in July, outperforming the other main sectors. South East Industrials continue to outperform the Rest of UK, reporting an increase of 0.3% in July. Capital values in the Rest of UK submarket were flat. Rental values increased 0.2% across the Industrial sector.
Office capital values increased 0.1% in July. Capital values for Central London Offices and Outer London/M25 were flat for the month, while Rest of UK reported marginal growth of 0.1%. Rental values rose 0.2% overall in the Office sector in July. Central London Office rental values increased more than the sector average (0.4%), attributable to 0.5% growth in the West End submarket. Rest of UK Offices reported 0.1% over the month.
”July’s results continue to mirror the trends reported in 2019 so far, with continued downward pressure from the Retail sector pushing All Property capital growth into negative territory, ” said Robin Honeyman, Research Analyst at CBRE UK.