High Street Shops See 1% Drop in Q1 Prime Rents
- High street shop prime rents fell by 1% in Q1 2019
- Shopping centre prime rents decreased by 1.3%
- Retail warehouse prime rents dropped 1%
- UK prime commercial property rental values increased 0.1%, slowest growth since Q3 2012
- Industrial sector saw ninth consecutive month of outperformance with 1% increase in prime rental values
- Office prime rents rose by 0.6%
According to CBRE’s Prime Rent and Yield Monitor, high street shop prime rents fell by 1% in the first quarter of this year. This marks an acceleration from the falls reported in Q3 (0.4%) and Q4 (0.4%) of 2018. Shopping centre prime rents dropped 1.3%, while retail warehouse prime rents decreased by 1%. The retail sector has been pulling down the overall commercial property market rental prices, as UK prime commercial property values increased only 0.1% in Q1 2019, matching Q4 2018 as the slowest growth since Q3 2012. In contrast, the industrial sector experienced its ninth consecutive month of outperformance with a 1% increase in prime rental values. Robin Honeyman, research analyst at CBRE UK, commented: ‘Falls in the retail sector have pulled down the all property results in Q1 2019, despite the relative strength of office and industrial performance. Our prime rent and yield data continues to show prime retail coming under pressure, both in pricing and rental values.’
Factuality Level: 8
Factuality Justification: The article provides accurate information from a reliable source (CBRE’s Prime Rent and Yield Monitor), presents the data clearly, and includes relevant quotes from an expert in the field. However, it could be improved by providing more context or analysis on the factors affecting retail rents and offering comparisons to previous quarters or years for better understanding of the trend.
Noise Level: 3
Noise Justification: The article provides relevant information about changes in prime rents for different types of commercial properties, but it lacks analysis or exploration of the underlying causes or potential consequences of these trends. It also does not offer any actionable insights or solutions.
Financial Relevance: Yes
Financial Markets Impacted: UK commercial property market
Financial Rating Justification: The article discusses changes in prime rents for different types of properties (retail, shopping centres, retail warehouses, offices and industrial) which directly impact the financial performance of companies operating in these sectors and the overall UK commercial property market.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: