Central London continues to outperform – CBRE
UK commercial property values grew slightly during September, says CBRE in its latest Monthly Index report. Total returns for All Property rose 0.6% after a 0.5% increase in August, while capital values edged up 0.1% after a slight dip the previous month.
CBRE says most types of commercial property produced positive returns in September. Office property returns overall were 0.6% in September, with capital growth of 0.1%. Central London and Midtown offices continued to outperform, with total returns of 1.0% and 1.8% respectively, but outer London/M25 offices returns turned negative with a minus 0.2% return signalling the end of two years of positive returns. Offices in the rest of the UK saw no capital growth, with returns of 0.5%.
The industrial sector was the strongest, with total returns of 0.7% and capital growth of 0.2%. Retail returns were 0.5% overall – high street shops showed slight improvement over the previous month as values flattened and returns were also 0.5%, while retail warehouses and shopping centres recorded total returns of 0.6% and capital growth of 0.1%.
