UK - Capital appreciation in the UK commercial real estate market has slowed to the shallowest monthly growth since the recovery in prices began last summer, according to Investment Property Databank (IPD).
The IPD UK monthly index in August saw a total return of 0.7% when combined with a 0.6% income return.
The slight increase in capital values was the mildest monthly capital appreciation recorded by IPD in more than six years, reflecting a fractional 3 basis-point rental decline offset by a degree of yield compression.
According to the index, UK real estate values have risen by 15.6% in the past 13 months, while the 2010 year-to-date growth now stands at 6.2%.
The month was marked by the industrial market delivering the first sector capital depreciation since the recovery, at a fractionally negative 5 basis points, while retail and offices rose by 0.1% and 0.2%, respectively.
The industrial sector completed a 13-month unbroken 10.8% capital growth up until this point, although it still reported the shallowest rebound among the sectors.
This contrasts with the 14-month rebound in the retail sector, which has so far amounted to 18.7%, and a 13.9% value rise in the office sector over the 12 months to August.
Industrial rents also declined in August, following 0.1% growth a month earlier, while retail rents have completed a 9.3% unbroken decline since September 2008.
By contrast, office rents rose for the fourth consecutive month in August, by 0.1%, and by 0.6% since May.
The office market is the only sector to benefit from both rents and yields having a positive influence on capital growth, albeit at modest levels.
Phil Tily, managing director at IPD UK, said: "On the eve of the two-year anniversary of the collapse of Lehman Brothers, it is worth remembering the property market storm that erupted two years ago.
"Subsequent to the investment bank's demise, property values declined at the fastest pace in the history of the IPD UK monthly index."
Tily added: "Two years on, and markets have - for now, at least - plateaued as rents and yields moved fractionally in August following the trend of recent months.
"However, calm periods are as good a time as any to reinforce the message that investors should remain vigilant of any risks within their property portfolios."
