U.K. rental and capital values rise in March for the retail, industrial sectors

The fall in commercial property capital values slowed to 0.1 percent, while rental values rose by 0.2  percent in March 2024, according to the latest CBRE UK Monthly Index. Total returns rose to 0.4  percent in March compared with 0.2 percent in the previous month.

Retail capital values rose by 0.4 percent in March, the first monthly rise for the sector since May 2023. The increase was driven by retail warehouses, where capital values rose by 0.6 percent. Capital values also increased 0.1 percent for standard shops. Rental value growth for the retail sector was steady at 0.1 percent, while the total return rate was 1.0 percent in March. Retail warehouses posted the highest total return at 1.2 percent, with standard shops at 0.7  percent and shopping centers at 0.4  percent for the month.

Office total returns were flat in March 2024, but capital values continued to fall. A decrease of 0.5 percent month-on-month at the sector level reflected a fall of 0.3 percen