The UK retail sector has seen its first growth in value in over three years, according to the latest CBRE Monthly Index
Data from the May 2021 edition of the global real estate firms’ report show that the UK’s Retail sector capital values rose 0.1% – the first monthly increase in importance for the sector since December 2017.
However, despite the lifting of some coronavirus restrictions throughout the UK, CBRE are keen to stress that this growth ‘was driven entirely by Retail Warehouses’ which posted its strongest monthly capital growth in over six years at 0.8%
The High Street meanwhile posted a slight decline of -0.1%, with capital growth for Shopping Centres at -1.2%.
Capital values across all UK commercial property increased by 0.5% for the third consecutive month. However, the Office sector saw capital value growth of -0.2% over May.
Commenting on the report, Toby Radcliffe, Research Analyst at CBRE, said: “May posted solid growth at the All Property level with more evidence of Retail having reached a trough in values as the sector posted positive capital growth for the first time in over three years.
“Meanwhile, Office sector values, especially outside of Central London, continued to drift downwards. In May, Retail reported greater capital growth than Offices for the first time since October 2016, illustrating the changing fortune of the sectors. However, whether this marks the start of a new sector hierarchy remains to be seen.”