Commercial real estate capital value in the UK grew by 1% in July, marking the greatest monthly growth rate since December 2014.
Industrial assets led the charge with capital growth of 2%, according to CBRE – a slight drop from the 2.3% recorded in June. The next largest rise was in retail, up by 1.1% due to a notable jump of 2.1% in growth for retail warehouses, a monthly record.
Offices saw monthly capital value growth of 0.2%, with growth of 0.3% outside of London pulled down by a flat performance in the capital.
CBRE research analyst Toby Radcliffe said: “The recent rebound in values has continued at an accelerated pace in July. Positively, the growth in values seems to be relatively robust, with increasing capital values across retail, offices and industrials. This represents the first month to post rising values in all three sectors since October 2017.”
Across all asset classes, rental value rose by 0.2% during the month – 0.2% for offices, 0.5% for industrials and -0.2% for retail.
That left the total all-property return at 1.4%, including 2.3% for industrials, 1.7% for retail and 0.5% for offices.
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