Steady start to 2017 for UK commercial property, rental values remains stable in January : CBRE
Rental values remained stable in January 2017, increasing 0.1% on average across UK commercial property, according to the latest CBRE Monthly Index. The Industrial sector continued the strong performance seen at the end of 2016 into the new year, outperforming all other sectors with rental values growing 0.3% over the month.
UK All Property capital values rose by 0.3% on average, with Outer London/M25 Offices recording the strongest growth for the month, increasing 0.6%. The Retail Warehouse sector, recorded capital value growth of 0.2%, up from 0.1% in December, going against the historic trend of a weaker performance in January compared with December, which was seen in all other segments. This trend of a quieter January also affected total returns across All UK Property, which fell from 1.1% in December to 0.7% in January.
“Following a positive end to a turbulent 2016, January saw a relatively solid start to 2017, with industrials continuing to lead the way.” said Miles Gibson, Head of UK Research at CBRE.