According to the latest CBRE Monthly Index, UK commercial property capital values fell marginally by -0.1% in January 2019.
Rental values were flat over the month. Total returns turned positive, recording 0.3% in January.
The Retail sector experienced a -0.7% fall in capital values and -0.2% fall in rental values in January 2019. Capital values, rental values and total returns were all negative for the fifth consecutive month. Shopping Centres recorded a fall of -0.6% in capital value over January while total returns were -0.1%. Retail warehouses experienced positive rental value growth for the first time since July 2018 (0.1%) but still recorded a -0.8% fall in capital values in January 2019.
The Office sector was stable in January 2019, recording capital value growth of 0.1% and total returns of 0.5%. Rental values remained flat. The City and West End & Midtown markets both experienced marginal improvements in total returns, as capital values remained relatively flat. Capital values in Outer London & M25 offices were also flat. For the Rest of UK offices capital values (0.3%) and total returns (0.8%) outperformed.
While remaining the star performer of the asset classes, January 2019 saw the Industrial sector experience its lowest monthly growth in capital values (0.3%) since October 2016. In the South East there was capital value growth of 0.4% and total returns of 0.7%. Rental values increased 0.2% over the month.