Retail value fall slows as heat comes out of industrial
Retail capital values fell by 0.1% in April, according to the latest CBRE Monthly Index, the smallest monthly fall in values for the sector since February 2018.
Standard shops in the South East recorded an increase in capital values, up by 0.2%, driven mostly by rising values for supermarkets. Retail warehouses reported capital growth of 0.6% for the second consecutive month, while shopping centres continued to post declining capital values – down by 1.8%. This decline was the smallest in the past nine months, however.
Retail rental values declined by 0.2% in April, with only retail warehouses reporting an uplift (0.1%). Retail total returns were 0.6%, the first positive monthly return for the sector since August 2018.
Retail capital values fell by 0.1% in April, according to the latest CBRE Monthly Index, the smallest monthly fall in values for the sector since February 2018.
Standard shops in the South East recorded an increase in capital values, up by 0.2%, driven mostly by rising values for supermarkets. Retail warehouses reported capital growth of 0.6% for the second consecutive month, while shopping centres continued to post declining capital values – down by 1.8%. This decline was the smallest in the past nine months, however.
Retail rental values declined by 0.2% in April, with only retail warehouses reporting an uplift (0.1%). Retail total returns were 0.6%, the first positive monthly return for the sector since August 2018.
In offices, capital values declined 0.1%, in line with March’s figure. Central London offices reported positive capital value growth of 0.1%, however. There was no rental growth in the sector, with only outer London and the M25 region reporting a small increase in rental values (up by 0.1%). Office sector total returns were 0.3% in April.
The industrial sector continued to show value growth, albeit at a slower rate. Capital values increased by 1.8% in April, compared with 2.6% in March. Rental values displayed a similar trend of continued growth, increasing by 0.5%. Industrial total returns for the month were 2.2%.
Capital values increased by 0.5% across all UK commercial property in April 2021, the third consecutive month to report positive capital value growth at the all property level. Rental values rose by 0.1% in the month, with total returns at 1%.
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