CBRE monthly index shows rental and capital values continue to slide
The retail sector suffered further falls in March 2019 with a -1.2% decrease in capital values according to the CBRE monthly index. Capital values, rental values and total returns were all negative again for the seventh consecutive month. Shopping centre capital values fell once again (-2.5%). High street shops reported the second biggest fall in capital values since July 2016 (‑0.7%). Retail warehouse capital values fell ‑0.8% and rental values were flat. Total returns for the retail sector in Q1 2019 were -1.3%, driven by a -2.8% decrease in capital values. Rental values were ‑0.9% in Q1 2019.
Robin Honeyman, research analyst at CBRE UK, said: “Results for the first quarter of 2019 mirror the trends reported so far this year and throughout 2018. The Office and Industrial sectors have maintained a steady course compared with the turbulence experienced in the Retail sector. Overall, results for Q1 2019 were less positive that those reported for the same period in 2018.”