Commercial property values fall in the UK

According to the latest report from CBRE, the UK has suffered a substantial drop in the commercial property market, as values have fallen by 0.2%, making a buyers’ market imminent as a result of the decline over recent months.

In 2011, £33.4 billions of property was exchanged, but office, retail and sectors have all noted a 0.2% fall.

Central London has seen its first decline after a two year increase which has “caused a softening in overall office performance this month, as the counter buoyancy effect of a strong central has stalled”, according to the report.

Offices within the rest of the UK have also noted a decline with values falling by 0.4%. The retail sector has also suffered a notable lack in business too, seeing returns of 0.2% over the first month of 2012, down from 0.4% the previous – a fall in value of 0.2%.

The weakest sub-sector in January proved to be shopping centres, as capital value showed a fall of 0.5%. Retail warehouses saw a decline from 0.7% in December to 0.4% on their monthly returns. High street shops experienced a slight increase in January, although their values still fell by 0.1% with total returns of 0.3%.

Occupier markets saw no major deterioration, although a fall in rental values was noted throughout January – down by 0.1%, and by 1.2% throughout the last year. Shopping centres had a decrease of 0.1% in rents, while retail warehouses maintained stability in January as this space is considered to be in short supply.

Further decline was illustrated within occupier and investment markets, as capital values fell 0.2%, with total returns of 0.3% being delivered. As a direct result of issues surrounding the Eurozone, a gradual decline in performance is evident over the past four months.

There has also been a fall of 0.3% in rental values in January 2012 – notably the weakest month since September 2011.

Bookmark on del.icio.us

Share on Facebook

Share on StumbleUpon

Tweet This

About Work Space Search

Work Space Search have written many articles for the Work Space industry, in the UK, the United States and worldwide, with the aim of helping small businesses, medium sized companies, as well as large corporate companies wishing to rent all kinds of work space, with industry information, work space comparisons and general work space advice. Work Space Search has helped businesses find, compare and rent every type of work space, all over the world, from prestigious luxury serviced office space in many of the main global business centres, to practical and affordable industrial units in out of town or rural locations.
This entry was posted in Commercial Property and tagged . Bookmark the permalink.