Sheds lift quarterly capital growth to three-year high
The industrials sector has helped UK commercial real estate to post its strongest quarter for capital value growth since the start of 2018.
Capital growth across all asset classes over the first three months of the year stood at 0.7% according to new analysis from CBRE, with rental growth at 0.1%.
Industrials led the charge, with quarterly capital growth of 4.6% and rental growth of 1.4%.
The industrials sector has helped UK commercial real estate to post its strongest quarter for capital value growth since the start of 2018.
Capital growth across all asset classes over the first three months of the year stood at 0.7% according to new analysis from CBRE, with rental growth at 0.1%.
Industrials led the charge, with quarterly capital growth of 4.6% and rental growth of 1.4%.
That more than offset the performances from retail, which posted a 2% fall in quarterly capital value and a 1% drop in rental value, and offices, which saw capital value down 0.3% over the three months and rental value up by 0.2%.
Total returns for the quarter stood at 1.1%.
In March, industrials recorded capital growth of 2.6% and rental growth of 0.8%, with record capital growth seen outside of the South East. For retail the monthly figures were -0.8% and -0.4%, and for offices there was a 0.1% fall in capital value while rental value remained flat.
Toby Radcliffe, research analyst at CBRE, said: “March has been another broadly positive month, with new records set by industrials and promising signs seen from retail warehouses. Despite flat office values and continued declines in some retail subsectors, Q1 2021 ended strongly, recording the greatest capital growth since Q1 2018.
“Combined with the imminent relaxation of lockdown restrictions, this should be cause for cautious optimism as we move into Q2.”
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