Figures produced by the global real estate firm CBRE has revealed that the Retail sector is the main cause of decreased capital values despite a positive performance for the Office and Industrial sectors.
As revealed in CBRE’s UK Monthly Index for October, capital values decreased -0.3% overall with capital values in the Retail sector, falling -1.0%.
CBRE’s figures make for grim reading with values decreasing across Retail Warehouses (-1.2%), Shopping Centres (-1.1%) and UK High Street Shops (-0.7%). While the high street performed better than the sectors average, Retail rental value s were down -0.4%, with total returns at -0.5%
Capital growth in the Industrial sector slowed by -0.2% from September’s results of 0.3% to just 0.1% in the month of October.
According to the findings presented to Commercial People by CBRE, South East Industrials continue to outperform the Rest of the UK, with capital growth of 0.2% for October vs a -0.2% fall elsewhere. Rental values across the Industrial sector, however, did show a marginal increase of 0.1% (vs September) to bring the total returns to 0.5% for the month.
Robin Honeyman, a Senior Research Analyst at CBRE UK, said: “October’s results were again a repeat of the wider trends reported throughout 2019 so far, with poor Retail performance dragging down All UK Property results. With Year to Date returns of 5.2% and 5.8% respectively, the battle is on between Offices and Industrials as to which will be the best-performing market of 2019.”
Capital values in the Office sector meanwhile made for more positive reading with the sector increasing by 0.2% (vs September) and continuing to outperform Industrial for the fourth month.
In London, office capital values increased by 0.1% while numbers for the Rest of the UK submarkets increased to 0.4%.