When it comes to property rental values in the UK commercial market, it has been announced that these have risen in the third quarter of 2019 thanks to the industrial and office sectors respectively performing well in recent months.
What were the increases in commercial property values?
Statistics for the third quarter of this year show that commercial property values have increased by 0.4 percent. This inline with rental values for industrial and office space in the UK increased by 1.7 percent.
In terms of rental values in the office sector, these had increased by approximately 0.7 percent for the third quarter. One of the main reasons cited for this rise was down to the strong performances of offices to rent in central London. Other locations that also did well when it came to rental valuations include the northeast, east of England as well as Yorkshire and Humber.
Retail rental sector prices fall
Unfortunately, not all areas of commercial property have experienced an increase in their rental value. This is predominantly the case for the retail sector, which has seen its rental values decline, which has been a trend of late. Nevertheless, the recently published data shows that this is at a slower rate compared to the second quarter.
For example, in the second quarter of 2019, the price of high street shop rental values had dropped by 1.1 percent. Comparatively, in statistics for the latest quarter, retail rental values had lowered by 0.8 percent instead.
Which areas of retail were impacted the most?
In terms of the locations in the country that was the most affected by rental property values, it was shops that were situated in the northeast of England, which suggested a decline of four percent this quarter.
Elsewhere in the country, other regions that saw a fall in property rental prices for retail include Yorkshire and Humberside, both experiencing a decrease of 3.4 percent.
Meanwhile, shopping centre rents represent the third biggest decline for the retail sector in the past five years. In the third quarter, the data shows that these rents had fallen by 0.8 percent. When it comes to retail warehouse prime rents, these had reduced by 1.7 percent in total.