Landlords

Commercial property market remains subdued

Warren Lewis
|
14th March 2019
commercial

New data released by CBRE has shown that capital values across UK Commercial property fell by -0.3% in February 2019.

According to the figures, the retail sector continued to struggle, suffering a -1.0% fall in capital values in February 2019. Capital values, rental values and total returns were all negative again for the 6th consecutive month. Shopping Centres recorded the second greatest fall in capital values since July 2016, of -2.1%, as rental values fell by -0.8%. This pushed total returns for the month to -1.6%. High Street Shops reported a decline in capital values of -0.3%, while Rental values were flat. Retail warehouses experienced falls in both capital values (-0.9%) and rental values (-0.5%),

For the thirteenth consecutive month the Office sector recorded positive capital values, rental values and total returns. February 2019 recorded capital value growth of 0.1% and total returns of 0.5%. Rental values increased marginally by 0.1%. West End & Midtown offices were the only submarket to record a fall in capital values (-0.1%). Outside of London, UK offices pulled up the sector average with capital value growth of 0.2% in February.

The Industrial sector again provided a boost to overall results in February. The South East submarket performed strongest, recording 0.5% growth in capital values and 0.3% growth in rental values. However, Rest of UK experienced a fall in capital values (-0.1%).

Robin Honeyman, Research Analyst at CBRE UK, commented: "February continued the slow start to the year and whilst the Office and Industrial sectors maintained a steady path, the turbulence witnessed in Retail, in particular in Shopping Centres has shown no signs of abating."

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