Good news, commercial property investors – the market is starting to look a little brighter!
For the second month running, commercial property values are on the rise, according to the latest figures from CBRE. This is a welcome change after a tough few years.
Retail Is Back In Fashion
One of the biggest surprises is the comeback of retail. The sector saw the biggest gains, with capital values jumping by 0.7% in June. Retail warehouses were particularly hot, with values rising by 1.2%. Overall, retail investments returned 1.3% for the month and a healthy 3.1% for the whole quarter.
This is a major shift, as retail has been struggling for a while. But it seems that the shift to online shopping has plateaued, and people are going back to the high street. This is great news for anyone looking to buy into the retail sector.
Industrial Keeps Its Momentum
The industrial sector also continued to do well, with capital values up 0.4% in June. Overall returns for the month were 0.8%, with 2.3% growth in the quarter. The industrial sector has been a strong performer in recent years, and this continued growth shows that it remains a solid investment option.
Office Market Remains Stalled
The office market, however, remains a bit of a downer. Values fell by 0.4% in June, marking two years of consecutive monthly declines. The picture isn’t all bad though – the West End saw its second month of rising values and Central London is still holding up better than the regions.
Overall Picture
The overall picture is positive for the commercial property market. The retail and industrial sectors are leading the charge, showing strong growth. The office market is still struggling, but there are some signs of life in the most desirable locations.
Key Takeaways for Investors
- Retail is back, with strong returns and rising values.
- Industrial remains a solid investment option, with continued growth.
- Office values are still falling, but Central London is holding up better than the regions.
This data suggests that now is a good time to consider investing in commercial property, particularly in the retail and industrial sectors. However, as always, do your research and consult with an expert before making any investment decisions.