The overall value of U.K. commercial real estate fell by –3 percent in March, a figure only matched in recent times during the Global Financial Crisis and the immediate aftermath of the Brexit vote in 2016.
CBRE’s U.K. Monthly Index update has shown a 14-basis-point rise in yields and a rental values decrease of –0.2 percent. Total returns for March were –2.6 percent. March’s steep decline in valuation means that over first quarter 2020, capital values fell by –3.3 percent in the United Kingdom, while rental values decreased –0.3 percent. All property total returns were –2.0 percent for the quarter.
The index has also shown a 22-basis-point increase in retail yields, which is more than double that seen in offices, at 8 basis points, and industrials, at 9 basis points. This meant that the retail sector suffered a –5.1 percent decrease in capital values over the month. The largest decreases within the sector were reported for shopping centers at –6.7
