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CBRE Monthly Index: Industrial Sector Continues to Impress

Figures released by the global real estate firm, CBRE have revealed that capital values were unchanged at 0.0% across all UK commercial property in November 2020.

According to the latest CBRE Monthly Index, this represents the first time since October 2018 that capital value growth has not been negative at the all property level. Meanwhile, over the month, rental values fell -0.2%, while total returns were 0.5%.

As shown in the graph above, in November, the Retail sector recorded a -0.8% decrease in capital values. However, High Street Shops South East and Retail Warehouses outperformed sector average, with values decreasing by 0.3% in both subsectors. 

Retail rental values also declined, this time by -0.5% over the month, while Retail Warehouses reported a smaller fall at -0.2%. 

The Office sector meanwhile, posted capital value growth of -0.4% over the month, with offices outside of central London seeing a fall to -0.5%. 

The Industrial Revolution:

The month of November was yet again, another strong month for the Industrial sector, with Capital values rising 1.8% – the largest monthly increase since December 2017. 

In November, rental values for the Industrial sector increased by 0.3%, while the total returns for the month were 2.2%.

Commenting on the data from this months index, Toby Radcliffe, Research Analyst at CBRE said: “Despite a second national lockdown in place throughout November, commercial property values did not report falls anything like the magnitude reported in March.”

Toby continued: “While the Retail and Office sectors continued to see values decrease, November was notable for the fact that capital values did not fall at the all property level. This was largely due to strong Industrial sector performance, which pulled up the overall average. By the end of 2020 Industrials now look as though they may even surpass the capital growth reported by the sector in 2019.”  

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