Commercial property values increase in first quarter of 2018

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Figures released by the CBRE Monthly Index show that capital values of commercial property increased by an average of 0.9% in the first quarter of 2018. Rent values rose by 0.5% in the same period.

The retail sector figures are not as good, with values falling by 0.2% in March 2018. Rental values did increases slightly with a 0.1% rise. Retailers on the high street in the South East performed better with 0.5% capital growth and rental increases of 0.2%.

Office space had a capital growth of 0.4% in March and an increase of 0.3% on rental values. London had higher growth with 1% growth capital values in Central London and 1.1% growth in the Outer London and M25 areas.

In the industrial sector, values rose by 1.7% in March. This has been boosted by performance in the South East which had the highest industrial sector growth at 2.1%. Industrial rental growth was 0.5% in March.

The Head of Research at CBRE, Mile Gibson said:

“March’s results show the usual quarter-end improvements in performance, although this boost is muted compared to March 2017. Overall, results for Q1 2018 were solid, with industrials continuing to shine, and promising signs of a return to rental growth in Central London Offices.”

Though growth in commercial property values is not dramatic, the sector remains attractive to investors. There are many commercial products available to finance commercial property purchases and mortgage brokers can find the best deals.

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