UK prime commercial property rental values fell -0.2% in Q2 2019 - the largest decrease in ten years, according to property firm CBRE.
High Street Shop prime rents falling -1.1% in the second quarter of 2019 - a minor acceleration from the -1.0% reported in Q1.
Shops in Wales reported the largest decrease, reporting a fall of -7.1%. The next biggest fall was -1.5% in Eastern Shops.
Shopping Centre prime rents fell ‐1.2% over the quarter. Overall, High Street Shop prime yields rose 11bps in Q2.
Prime Shopping Centre yields increased 18bps over the quarter. Retail Warehouse prime yields rose 51bps.
Robin Honeyman, research analyst at CBRE UK, said: “Our Q2 results are very much a continuation of the trends seen in Q1 2019 with downward pressure from the Retail sectors now pushing All Property rental growth into negative territory. A decline of -0.2% in Q2 is the largest fall in ten years, highlighting the extent to which prime Retail is coming under pressure, both in pricing and rental values.”
Precis
Commercial property rentals suffers largest decrease in 10 years
UK prime commercial property rental values fell 0.2% in Q2 2019 - the largest decrease in ten years, according to property firm CBRE. High Street Shop prime rents were down 1.1% in the second quarter of 2019 - a minor acceleration from the -1.0% reported in Q1. Robin Honeyman, research analyst at CBRE UK, said the results highlight “the extent to which prime Retail is coming under pressure, both in pricing and rental values.”
