Capital values for U.K. commercial real estate increased again in February, rising 0.2 percent according to the latest CBRE U.K. Monthly Index. Rental values rose by 0.2 percent month-on-month, while total returns for commercial property were up 0.6 percent.
Retail was the best performing sector for the second month in a row, recording a total return of 0.8 percent in February. Capital value growth was 0.2 percent over the month, with standard shops and retail warehouses recording growth of 0.3 percent compared to 0.1 percent for shopping centers. Rental value growth was also 0.2 percent in February. Standard shops saw slightly higher rental value growth (0.3 percent) than retail warehouses (0.2 percent) in February, while shopping center rental values were unchanged.
Office total returns were 0.4 percent in February, with income return compensating for a 0.1 percent fall in capital values over the month. While capital values increased slightly for outer London/M25 Off
