UK commercial property values continue to fall in February

UK commercial property values continue to fall in February

Capital values across the UK’s commercial property sectors decreased -0.1% in February, according to the latest CBRE UK Monthly Index. Rental values also decreased -0.1%, while total returns were 0.3% for the month.

The Office sector reported capital value growth of 0.4% in February. Rental values increased 0.3%, while total returns were 0.8% across the sector. Most subsectors reported solid capital and rental value growth, although Outer London/M25 Offices underperformed, reporting no rental value growth for the month.

In February capital growth in the Industrial sector was 0.2%. Rental values also increased 0.2% over the month and total returns were 0.6%. South East Industrials continue to drive most of the growth in the sector as a whole with capital and rental values increasing 0.4% and 0.3% respectively.


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Capital values in the Retail sector decreased -1.0% in February. Capital value growth was negative across all subsectors. This fall was particularly pronounced for Retail Warehouses where capital growth was -1.2% and Shopping Centres where growth was -1.4%. Overall Retail rental values fell -0.8% the greatest drop in over a year. Total returns were -0.4%.

”While current economic uncertainty may have an effect on commercial property values in the coming months, for now the story remains much the same as it has over the last year with a continuing divergence in sector performance. In February this divergence was particularly evident in the contrasting fates of the Retail and Office sectors,” said Toby Radcliffe, Research Analyst, CBRE.

UK commercial property rental values continue to decrease in February