U.K. Commercial property capital values increase 1.1 percent in May

Capital values increased 1.1 percent across all U.K. Commercial property in May 2022, according to the latest CBRE Monthly Index. During the month, rental values rose 0.5 percent. Total returns were 1.5 percent.

Capital values for the Retail sector increased 0.8 percent during the month. Capital value growth continues to be driven by Retail Warehouses, with capital values increasing 1.2 percent.  Shops in the Southeast performed slightly better than in the rest of the United Kingdom, reporting a capital value growth of 0.4 percent and 0.1 percent, respectively. Rental values for the retail sector increased 0.1 percent during the month.  Rental-value growth was pulled down by shops in the rest of the United Kingdom, which reported a decline of 0.3 percent in May. Shopping centers reported a rental-value growth of 0.1 percent, which represents the first increase in values since March 2018. Rental growth for Retail Warehouses remained flat over the month. Total returns for t