Commercial Property Rents and Capital Values Remain Steady in May

Posted on 9 June, 2016 by Chris Grigorovsky

It’s been revealed by CBRE’s latest Monthly Index that commercial property rental and capital values in May remained steady across the UK, despite “a great period of uncertainty.”

Rental

Commercial rental values grew by 0.1%, while capital values continued the growth trend seen at the start of 2016 with a 0.2% increase.

According to CBRE, rental growth performance was tarnished by West End and Midtown offices, which saw rental value growth at 0.1%, the weakest since October 2013. Also, leading Central London offices rental values were also at their weakest with a growth of 0.2%, not seen since June 2013.

Not all was negative however, as the City performed well, with office rental values experiencing growth by 0.6% in May, a major step up from March and April’s 0.1%.

Capital values across the UK in May saw a growth of 0.2%, while total returns continued its positive performance with a steady growth of 0.6%.

Commenting on the findings, Head of Research at CBRE, Mike Gibson, said that the fundamentals of the market are strong and “This time next month, we’ll have a clearer idea of the direction capital values and rents will go in the second half of the year, and a flavour of the pace at which they will get there.”




Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.


Recent Posts

Optimism from the Bank of England’s chief economist

The most expensive commercial properties.

Businesses operating from shared premises will miss out on grants

BA cuts 12,000 jobs, unions hit back

Media Streaming Service See Record Subscriptions

Covid-19 Causes Millions To Claim UK Furlough Scheme

America, Amazon Wants You!

UK Firms Battle To Survive

COVID-19 Grounds EasyJet Fleet

ECB Emergency Fight Back Aganist Covid-19

Aldi’s Expansion Plan

British Steel on the verge of collapse with over 20,000 jobs at risk

Paris watches as flames engulf one of France’s most famous landmarks

Debenhams on the brink of administration as board reject Ashley’s bid

Emmanuel Macron pushes for a new Europe with European Parliament elections on the horizon

Brexit impacts property market

Brexit uncertainty impacts the property market