Improved performance in July – CBRE
The UK commercial property markets improved their performance in July with All Property total returns at 0.2% and values falling by 0.3% after their 0.5% decline in June, says CBRE. The firm’s latest Monthly Index shows that Central London property produced the strongest total returns in July at 0.7%, driven by returns of 1.0% in West End property property.
Total returns so far this year at 0.8% are described as “muted” but the firm says “the negative tide that swept in earlier this year seems to be subsiding, with value declines easing”.
Central London offices continued to produce strong capital value growth, while regional offices have seen capital values fall 6.8% so far this year, CBRE notes. All Property capital values have declined by 2.6% year-to-date.
Central London properties produced capital value growth of 0.4% in July after a flat June, thanks to the West End where values were up 0.7% for the month.
The retail sector produced no total return in July, as it continued to underperform compared with both the industrial and office sectors. However, it did improve slightly from the previous month, with values down 0.5% after a 0.6% decline in June. Values for industrial property were down 0.2%, with total returns of 0.3%.
