Commercial property values dip by 0.2%
Capital values across UK commercial property fell by 0.2% in January, according to the latest CBRE UK Monthly Index.
Rental values in January were unchanged from the previous month across all sectors, while total returns were 0.3%.
Capital growth in the retail sector declined by 0.7% in January, a similar fall to that seen in January 2019.
Capital values across UK commercial property fell by 0.2% in January, according to the latest CBRE UK Monthly Index.
Rental values in January were unchanged from the previous month across all sectors, while total returns were 0.3%.
Capital growth in the retail sector declined by 0.7% in January, a similar fall to that seen in January 2019.
CBRE noted that, despite the odds, standard shops recorded 0.1% positive growth for the first time in nearly two years, although growth was confined to the South East.
Across the sector rental values fell by 0.2%, and total returns were -0.2%.
The industrial sector welcomed 0.3% capital growth during the month, with rental values growing by a similar amount. Total returns were 0.7%. Regionally, the South East was highlighted as the sector’s top performer.
Offices reported capital value growth of 0.1% in January. Rental values increased by 0.1%, while total return stood at 0.5%.
Toby Radcliffe, research analyst at CBRE UK, said: “2020 looks to be off to a similar start to 2019; offices and industrials continue their steady performance while retail is more challenging.
“However, UK investment volumes in Q4 2019 surged, and it may be that this momentum will have a knock-on effect on valuations with the usual lag in a few months’ time.”
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