Industrial sector boosts commercial property market

24 Oct 2019

offices Rental prices in Britain’s prime commercial property market were up during the third quarter, boosted by robust activity in the industrial sector. 

Values of UK commercial property rose 0.4%, driven by industrial and office rental values which witnessed an increase of 1.7%. 

Rental values in the office sector climbed 0.7%, supported by solid performances in central London and across the east of England, the north east, Yorkshire and Humber. 

According to the latest data published by CBRE, rental values in the retail sector however, extended their decline, albeit at a slower pace when compared to the previous three-month period. 

The decline in high street shop rents slowed to -0.8%, from a previous -1.1% posted in the second quarter. Retailers in north east England experienced the steepest decline at 4%, followed by a 3.4% drop in Yorkshire and Humberside. 

Rents for shopping centres tumbled 0.8% during the June-September period, while retail warehouse price rents fell 1.7%.

Senior research analyst at CBRE UK Robin Honeyman said: “Third quarter results across the main sectors continued the trends seen in 2019 so far.

“A very slight easing of the downward pressure on retail prime rents meant all property rental growth returned to positive territory.

“However, the 0.8% decrease for shops last quarter is still the third biggest fall for the sector in the last five years.”