12 May 2017 | Herpreet Kaur Grewal
Prime rents in the industrial sector jumped 3.3 per cent in Q1, helped by performance in Eastern and South-East markets, according to real estate firm CBRE.
UK prime commercial property rental values increased by 0.8 per cent on average in the first quarter of 2017, boosted by the strong performances of industrials, according to CBRE's latest Prime Rent and Yield Monitor. Overall, prime yields fell slightly over the quarter.
In Q1 2017, and for the second consecutive quarter, the industrial sector recorded the largest increase in prime rental values of the main sectors.
Prime rents grew 3.3 per cent across the sector, with industrials in the South-East and eastern markets outperforming all other locations, increasing 6.0 per cent and 10.9 per cent respectively. Industrials in the rest of UK experienced no change in prime rents.
In Q1, prime rents in the office sector fell -0.4 per cent but there is a distinct regional divergence.
Within central London, prime office rental values were down -1.4 per cent in Q1 2017, owing to falls of -2.2 per cent in West End, -2.3 per cent in Mid Town, and -0.7 per cent in the City.
Conversely, in the rest of UK (excluding South-East and eastern areas) office prime rents grew 1.4 per cent over the quarter, helped along by strong performances in the South-West, North-East, and Yorkshire & Humberside.