The CBRE Retail team knows retail property. Our teams cover retail agency, out of town, shopping centres, lease consultancy and capital markets as well as corporate occupier services, research and consultancy. Based in the west end of London we have an extensive team covering central London retail as well as offices across the rest of the UK specialising in local retail knowledge.
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According to the latest CBRE Monthly Index, total returns for All Property were 2.1% in June. Capital values increased by 1.6% over the month.
Central London offices outperformed again, with a total return of 2.4%, driven by strong growth in June of 2.1%. Outside of Central London, capital values also continued to increase, however at a slower rate than in the previous month.
The biggest contributor to the strong retail performance was shopping centres, which recorded 2.9% capital value growth. Capital values for high street shops and retail warehouses increased by 1.1% and 1.5% over the month.
YIELD IMPACT DRIVING THE PERFORMANCE IN THE REST OF UK
UK commercial property recorded yet another strong overall performance in May. Total returns for All Property were 1.8% in May and 6.8% over the year to date. Capital values increased by 1.3% over the month and to the end of May this year capital values have recorded growth of 4.1%.
Total returns for All Offices were 1.9% in May, with capital values increasing by 1.4% over the month.
In the Rest of UK, yield shift is by far the biggest contributor to capital value growth, with increasing rental values playing only a small part. In contrast, rental value growth in London and the South East is making an increasing contribution.
The Retail sector continues to improve, recording a total return and capital value growth of 1.7% and 1.2% respectively. Although capital values are increasing, rental values continued to fall in May.
The latest CBRE Monthly Index showed that April’s returns across all UK commercial property continued to increase but at a slightly slower rate than in the previous month.
All Property recorded capital value growth of 0.7% in April, resulting in a total return of 1.2%. So far this year, capital values have grown by 2.8% and recorded a year to date total return of 4.9%.
The office sector recorded a strong performance in April. Capital values continued to grow, increasing by 0.8% over the month, and total return stood at 1.3% in April. For the first time in seven months, offices in Outer London/M25 outperformed not only the Rest of UK but also Central London.
The latest results also showed that the Industrial sector recorded the highest total return across all main sectors (1.5%) in April and continued to outperform the office sector. Capital values for industrial property continued to be strong and increased by 1.0% over the month
The retail sector continued to improve, recording a total return and capital value growth of 1.0% and 0.5% respectively. At the segment level, retail warehouses and high street shops recorded stronger results in April than shopping centres.