The CBRE monthly index has revealed that commercial property rental values in the quarter rose 0.5%, while total returns stood at 2.2%.
The industrial sector led the way in Q1 in terms of capital (3.1%) and rental value growth (1.2%), while the office market also showed an increase in capital value (0.8%) and rental value (0.3%).
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CBRE also reported that March was the second consecutive month of positive rental growth in the central London office market after 10 months of flat or negative changes.
The retail market was the only sector in the quarter to see a decrease in capital value growth (-0.4%), while retail rent growth remained subdued at 0.2%.
Miles Gibson, head of UK research at CBRE, said: “Overall, results for Q1 2018 were solid, with industrials continuing to shine, and promising signs of a return to rental growth in central London offices.”
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