Commercial Property Capital Values Remain Stable in August 2024, According to CBRE

UK commercial property capital values remained stable with no movement throughout August 2024. According to CBRE’s latest UK Monthly Index, all-property rental values increased by 0.2%, and month-on-month total returns were 0.5%.

In line with the all-property result, the capital value movement for the Retail sector was flat throughout August. Retail Warehouses were the only retail segment to post a capital value increase (0.2%), while both Standard Shop and Shopping Centre capital values fell. Rental values across the sector also remained stable, but Retail Warehouses and Standard Shops did record rental value increases (0.3% and 0.1% respectively). Month-on-month total returns were 0.6% for the retail sector throughout August.

Office capital values also remained unchanged throughout August. Central London capital values increased by 0.1%, while Rest of UK office capital values were flat over the month and Outer London and M25 offices recorded a slight fall. Office rental values increased by 0.3% in August, the highest increase of all sectors. This was due to both Central London and Rest of UK Office rental values rose by 0.5% over the month. Office total returns were 0.5% for the month.

Industrial capital values posted a mild increase of 0.1% in August. Industrials in the Rest of the UK posted a capital value rise of 0.2%, while capital values for Industrials in the South East increased by 0.1%. Industrial rental values grew by 0.2% over the month with Industrial in the Rest of UK again recording a stronger rental value rise compared with Industrials in the South East. The Industrial sector posted a month-on-month total return of 0.5% across August.