Prime rents tick upwards
Published: 24 January, 2017
CBRE research shows market broadly static at end of 2016
UK prime retail property rental values increased marginally in the final quarter of 2016 according to CBRE’s latest Prime Rent and Yield Monitor. Prime yields remained relatively stable.
The sector saw rising rental values in Q4 2016, with prime rents in high street shops rising 0.3 per cent in Q4. Shops in Scotland saw rents grow by 2.9 per cent over the quarter compared to the 0.5 per cent increase across the Rest of UK (excluding South East and Eastern.
Overall, prime yields remained relatively stable over Q4 2016. Prime shopping centres saw little yield fluctuation, ticking up 2bps. On average high street shops prime yields fell by -7bps, with West Midlands shop yields decreasing -26bps.
Miles Gibson, Head of UK Research at CBRE said: “Despite 2016 being characterised by uncertainty in the UK’s political and economic landscape, prime commercial property sector has again shown its resilience with positive, albeit easing, growth in prime rents across all main sectors.”