Prime commercial rental values on the rise despite Brexit uncertainty

Prime commercial rental values on the rise despite Brexit uncertainty




Rental values for UK prime commercial property increased by 0.6% in the third quarter on 2016, according to CBRE's latest Prime Rent and Yield Monitor.

Such a rise was achieved despite the “uncertain political and economic landscape” following the EU referendum result.

However, capital values for commercial property fell by 0.2%, caused by increased yields in the prime office sector.

The high street retail and industrial sector experienced the largest rises in rental values in Q3 2016 with rents increasing by 1.5% and 1.1% respectively.

Rent for central London high street shops increased by 2.8%, while the rest of the UK (excluding the South East and Eastern) saw rents go up by 0.9%.

Rent increases were recorded in approximately one-third of tracked locations in central London.

Miles Gibson, head of UK research at CBRE, said: “The EU referendum result has perpetuated the uncertain political and economic landscape seen before the vote with a continuing impact on property markets in the third quarter of 2016.

“Although the slowing of prime rental growth was expected given both the ‘Leave’ vote and the position of the rental cycle ahead of the referendum, some key sectors have continued to capitalise on high occupational demand for limited supplies of prime space.”

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