UK commercial property values fall

Capital values across the UK’s commercial property sectors dropped by 0.4% in September alongside flat rental values and returns, according to CBRE’s monthly index. During the third quarter, capital values decreased by 0.9% – the fourth successive negative quarter and the weakest of 2019 so far. Rental values increased by 0.1% over the quarter, up slightly from the 0.1% decline recorded in Q2. Total returns of 0.5% for Q3 brought returns for the year to date to 1.9%.

Retail

In Q3, capital values in the retail sector decreased by 3.6% (-2.2% in Q2), with shopping centres reporting a 4.6% drop.