UK commercial property rental values boosted by office and industrial sector
Rental values in the UK prime commercial property market rose slightly in the third quarter driven by a strong performance in the industrial sector.
UK commercial property values were up 0.4 per cent as industrial and office rental values increased 1.7 per cent.
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Office sector rents increased 0.7 per cent, boosted by strong performances in central London as well as east of England, the north east and Yorkshire and Humber.
However, retail rental values continued to decline, although at a slower rate than the previous quarter, according to the latest research by CBRE.
The decline in high street shop rents slowed to minus 0.8 per cent, from minus 1.1 per cent in the second quarter. Shops in north east England suffered the steepest decline of four per cent, followed by a fall of 3.4 per cent in Yorkshire and Humberside.
Shopping centre rents were down 0.8 per cent in the quarter and retail warehouse prime rents decreased 1.7 per cent.
Robin Honeyman, senior research analyst at CBRE UK, said: “Third quarter results across the main sectors continued the trends seen in 2019 so far.
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“A very slight easing of the downward pressure on retail prime rents meant all property rental growth returned to positive territory.
“However, the 0.8 per cent decrease for shops last quarter is still the third biggest fall for the sector in the last five years”.
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