Figures released by a leading real estate company show that Central London’s commercial property performance is performing better than the rest of the UK.
The findings published by the CBRE show that the London commercial property market remained constant as the rest of the U.K office space sector struggled to keep up.
UK commercial property performance remained constant in October, with total returns of 0.6 %, matching September’s figures, the latest findings by CBRE’s monthly index has shown.
The figures showed that Central London offices continued to outperform the other UK market sub-sectors in October although City office total returns slowed to 0.6% from 1.0% in September. Meanwhile performance in London’s West End and Midtown was stronger than the previous month at 0.8% and 0.9% respectively.
To date, the figures show that total returns are at 7.1%, with capital growth of 2.0% in the UK Property market over time.
David Wylie, Head of UK Economics & Forecasting at CBRE, said: “The growth in property values over the past month continues to be relatively skewed towards Central London offices, with strength there more than offsetting weakness elsewhere.
“With the UK market as a whole seeing virtually no movement in yields over the past six months, rental growth has provided the key difference. In the year-to-date Central London offices have seen values rise by 6.3%, which has been almost wholly supported by rental growth.
“By contrast, the slide in high street shop and shopping centre rental values has been a significant factor in holding back overall retail sector capital growth and returns,” he added.