Amid a weakening occupier market, All Property rental values fell by 0.1% in January. Industrials were the worst affected, with rental values falling 0.3%, while All Retail and All Offices saw rental values fall 0.1% last month.
Nick Parker, Senior Analyst of Economics & Forecasting at CBRE, said: "There was some encouraging transactional activity that took place in December, amounting to c£5.5billion of commercial real estate investment in the final month, taking the 2011 total just shy of £34billion. December’s glut was predominantly thanks to overseas investors filling their boots with UK property, in a market where buyers currently hold the cards. Over the next 12 months we foresee international investors group remaining a key component of the UK property investment, as they have increasingly become over the past 10 years.
"This month’s overall property performance isn’t surprising; sentiment has been weakening in line with the global economic slowdown since the middle of last year, and while it is a weak start to 2012, performance this year will be largely dictated by how events unfold in the euro zone."
January 2012 UK Monthly Index snapshot:
* All Property total returns were 0.3% in January, with capital values down 0.2%;
* Offices and industrials saw a mild outperformance over retails this month, with total returns of 0.3% vs 0.2% in retail;
* Central London offices saw values fall by 0.1% in January;
* Rest of UK and Outer London / M25 offices continued to see weak performance, with values down by 0.4% in both markets this month;
* Retail warehouse marginally outperformed shops with values flat compared with down 0.1%. Shopping centres saw values fall 0.5% this month;
* Rental values fell by 0.1% over the month, a slight deterioration on last month;
* Equivalent yields were unchanged over the month at 6.6%.
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