CBRE Prime Rent and Yield Monitor: Real estate giant reveals their latest research piece, focusing on the Prime UK commercial sector.
CBRE found that the UK prime commercial property rental values fell – 0.2% in Q2 2019, marking the first decrease at the national level since Q3 2012.
According to findings in CBRE’s latest ‘Prime Rent and Yield Monitor’, the fall was driven entirely by the Retail subsectors.
High Street Shop prime rents fell -1.1% in Q2 2019, marking a minor acceleration form the -1.0% reported in Q1. Shops in Wales reported the largest decrease, recording a fall of -7.1%, while the next biggest fall was in the East.
Office prime rents rose 0.4% overall in Q2, with results being pulled by Yorkshire & Humberside and East Midlands.
For the tenth consecutive quarter, the industrial sector has continued to outperform other areas, with prime rental values, increase 1.3%
Until recently Industrials in the North West have recorded the largest growth of all regions, however, in Q2 the North East took the top spot with prime rents increasing 2.4%, followed closely by Eastern (2.3%) and Yorkshire & Humberside (2.0%).
The industrial sector was the best performing prime market, recording a capital value growth of 1.6% Quarter-on-Quarter, and a Year-on-Year of +6.8%.
CBRE Senior Research Analyst Robin Honeyman, said: “Our Q2 results are very much a continuation of the trends seen in Q1 2019 with downward pressure from the Retail sectors now pushing All Property rental growth into negative territory.
“A decline of -0.2% in Q2 is the largest fall in ten years, highlighting the extent to which prime Retail is coming under pressure, both in pricing and rental values.”