London offices keep the CBRE Monthly Index positive
The CB Richard Ellis monthly index for November shows that there were large variations between commercial property markets last month, with four of the firm’s seven subsectors in decline while the overall market continued to see positive capital growth.
The All Property values indicator rose 0.2% over the month, producing total returns of 0.7%. Within this, the offices sector saw capital growth of 0.4% and returns of 0.9% as the buoyant market for Central London office space (returns up 1.4%) continued to bolster the figures, but returns from industrial property were just 0.3% following a capital value correction of 0.3%. Within retail, high-street shops returns were up 0.7%, in line with the All Property average, while retail warehouses turned in a strong performance with returns up 1.1%. Shopping centres, by contrast, produced returns of just 0.2%.
All Property rental values fell by 0.1% in November, with the Central London offices market again offsetting weakness in other areas. The overall decline was similar to that seen in October. All Property equivalent yields remained at 6.8% for the second month in a row, and were flat across all three main sectors.
