New data out also suggests UK logistics' two-year reign as the stand-out performer might have come to an end.
The value of retail property declined significantly enough in the UK in April to pull the entire performance of all UK property into negative territory.
CBRE’s monthly index just out says retail property lost -0.6% in April. That fall in value pulled under all-UK property to -0.1% after office values rose 0.3%, Central London offices 0.3%, industrial 0.2% and ‘other’ -0.1%.
This is the sixth consecutive month of negative value growth at the All Property level. Rental values were flat in April.
It seems the hardest hit retail sector is retail warehouses (-0.4%), whereas shopping centres were -0.1%.
CBRE’s Monthly Index also shows that having continuously outperformed the other main sectors for over two years, industrial property was not the best performer for the second consecutive month in April, reporting capital growth of just 0.1%.
Industrials in the South East reported an increase of 0.2% over the month. Capital values were flat for Rest of UK Industrials. Rental values increased 0.2%.
Robin Honeyman, senior research analyst, said: ‘For the second month in a row, the office sector has outperformed the industrial sector. Although based on only two months of results, this could signal a changing of the guard after over two years of industrial outperformance. The retail sector continues to struggle.’
