The latest Monthly Index (December) from commercial real estate services provider CBRE on the performance of the UK commercial property shows that the market has remained resilient offering good returns to investors in 2016.
The annual total return in 2016 for commercial investment in the UK was 2.7 per cent while the industrial property delivered a high of 7.2 per cent. During December, the capital values of the commercial property grew by 0.6 per cent. The industrial sector capital values grew by 1.4 per cent, which is the highest monthly growth in two years, CBRE found out. The office sector capital values increased by 0.2 per cent. Overall, 2016 ended on a positive note for investors in the commercial property.
The rents in the commercial property also delivered better returns. The rental values were up by 0.2 per cent in December with the office sector recording an increase of 0.3 per cent. Once again, the industrial sector outperformed others by registering 0.5 per cent growth in December. However, the rental values in the retail sector were stable. Overall, the rental values in the commercial property segment increased by 1.7 per cent in 2016.
December delivered very strong commercial property investment returns, at 1.1% for the month, according to the latest CBRE Monthly Index.