UK commercial property returns 6.3% in 2018 with mixed fortunes for the Retail and Industrial sectors

  • All UK Property capital values fell -0.5% in December while rental values fell -0.1% over the month.
  • At the All Property level, total returns were 6.3% for 2018 as whole, driven by income returns of 5.4%. Rental values increased 0.5% over the year.

  • While High Street Shops and Retail Warehouse capital values fell -3.4% and -8.2% over the year, Shopping Centres reported a double-digit decline of ‑10.5%.

  • Industrial sector total returns reached 18.1% for the whole of 2018, thanks to capital value growth of 12.4%.

  • The Office sector finished the year strongly, with total returns of 7.9%. Rest of UK Office total returns of 11.5% for 2018 were over double that reported in Central London (5.3%).