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.”


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.”

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