Despite falling rents, UK commercial real estate prices registered the largest monthly gain in more than three years, according to the results of the IPD index for September 2009.
In particular, the all property index that encompasses retail, office and industrial, posted a monthly capital growth of 1.1%. UK retail property registered the largest monthly value increase of 1.4%, while office property posted the smallest monthly value gain of 0.8%. UK industrial property posted an average monthly capital increase of 1.1%.
With income return at 0.7% for all three property types, total monthly return for UK commercial property averaged 1.8% in Septemer 2009, with retail property being the top performer with a 2.1% total return for the month.
The best performing UK commercial real estate sector over the six months to September 2009 was industrial, which posted a total return of 1.6%. This was also the case on a 12-month basis as the sector posted the least negative total return of -15.1%.
The retail property sector posted a positive total return of 0.8% in the six months to September 2009, but office posted a negative total return of -0.7%. Both sectors though posted a 12-month total return of about -20%.
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Return from UK Commercial Real Estate September 2009 to Market Watch
