Industrials - only sector to experience growth
The industrial sector has witnessed growth of 0.8% over the six months to May. This was the only sector to experience any rental value growth; the All Property Secondary Rent Index saw a rental value decline of 0.1%. With the exception of Scotland, all industrial regions experienced rental value growth of between 0.8% and 2%. During the previous six months, to November 1994, only the Midlands and Scotland had experienced any rental growth.
The All Offices index fell by 0.1% over the six months to May. This is in contrast to the previous six months which had seen secondary office rents increase by 0.6%. Fringe City and Central London, although having experienced rental growth, did so at a slower rate. Over the year, however, Fringe City and Central London have seen rental growth of 11.4% and 10.5% respectively. Scotland also experienced rental value decline in the office sector.
The retail sector experienced a decline of 0.4% in rental value over the six months to May, following a 0.7% rise in the previous six months. The North experienced the greatest movement in rental value with a 4.1% drop in the last six months and a 4.6% drop over the year. For the second successive six monthly period, Scotland was the region with the highest rental value growth.
Yields
Retail Yields Rise
For the second successive six monthly period, a rise in the All Property Secondary Yield has been experienced - this time by 0.3% points. This increase has been caused predominantly by the retail sector which saw its yield rise by 0.6% points. Both the offices yield and the industrial yield remained flat over the six months to May.
In the office sector, all regions with the exception of the West End and Central London, which saw yield rises of 0.2% points and 0.1% points respectively, remained flat. Over the year, however, all regions experienced rises of between 0.4% points and 0.7% points. An exception to this is Scotland, which saw its yield fall by 0.5% points.
The industrial sector behaved in a similar manner to that of the office sector with only Scotland seeing any change in its yield. All regions over the year experienced yield rises of between 0.2% points and 0.6% points
There was considerably more movement in the yields of the retail regions over the half year. All regions, with the exception of Scotland, saw yield rises of between 0.5% and 0.7% points. Scotland went against the trend, recording a 0.1% point fall.
Rent Index
6-monthly Change Annual
Change
Base (May 1984=100)
May94 Nov94 May95 May 94- Nov 94-
May 94-
Nov94 May 95 May 95
Shops 250 252 251 0.7 -0.4 0.3
Offices 203 204 204 0.6 -0.1 0.5
Industrial 198 198 199 0.0 0.8 0.8
All Property 220 222 221 0.6 -0.1 0.5
Rent Index 6 monthly Annual
Change Change
May94 Nov94 May95 May 94-
Nov 94- May 94-
Nov 94 May 95 May 95
All Shops 250 252 251 0.7 -0.4 0.3
Central London 226 227 234 0.6 2.9 3.5
Inner Sub London 234 234 239 0.0 2.2 2.2
Outer Sub London 250 256 253 2.2 -1.0 1.2
Suburban London 250 254 254 1.6 -0.1 1.5
London 245 248 250 1.3 1.0 2.3
South East 244 247 244 1.0 -1.1 -0.1
Midlands 272 273 274 0.5 0.3 0.8
North 209 208 199 -0.5 -4.1 -4.6
Scotland 265 271 281 2.2 3.9 6.2
All Offices 203 204 204 0.6 -0.1 0.5
West End 136 136 139 0.0 2.1 2.1
Fringe City 132 142 147 7.9 3.2 11.4
Central London 137 147 151 7.2 3.1 10.5
Suburban London 163 162 162 -0.4 -0.3 -0.7
London 150 157 161 4.9 2.1 7.1
South East 216 215 215 -0.3 0.0 -0.3
Midlands 269 268 268 -0.3 0.0 -0.3
North 174 174 174 0.0 0.0 0.0
Scotland 280 280 265 0.0 -5.3 -5.3
All Industrial 198 198 199 0.0 0.8 0.8
London 164 164 166 0.0 0.9 0.9
South East 204 200 203 -1.9 1.5 -0.4
Midlands 186 188 192 0.9 2.0 2.9
North 171 171 173 0.0 1.5 1.5
Scotland 265 269 260 1.7 -3.4 -1.8
Secondary Yields Yield Movement
May94 Nov94 May95 Nov 94-
May 94-
May 95 May 95
Shops 8.0 8.4 9.0 0.6 1.0
Offices 9.1 9.5 9.5 0.0 0.4
Industrial 10.1 10.5 10.5 0.0 0.4
All Property 9.4 9.8 10.1 0.3 0.7
Secondary Yields Yield Movement
May94 Nov94 May95 Nov 94-
May 94-
May 95 May 95
All Shops 8.0 8.4 9.0 0.5 1.0
Central London 7.9 8.2 8.7 0.5 0.8
Inner Sub London 8.8 9.1 9.8 0.7 1.0
Outer Sub London 8.0 8.3 9.0 0.7 1.0
Suburban London 8.2 8.5 9.2 0.7 1.0
London 8.2 8.5 9.2 0.7 1.0
South East 7.2 7.6 8.2 0.6 1.0
Midlands 7.3 7.7 8.2 0.5 0.9
North 8.5 8.9 9.4 0.5 0.9
Scotland 8.4 8.6 8.5 -0.1 0.1
All Offices 9.1 9.5 9.5 0.0 0.4
West End 8.8 9.3 9.5 0.2 0.7
Fringe City 8.4 8.9 8.9 0.0 0.5
Central London 8.6 9.1 9.2 0.1 0.6
Suburban London 9.6 10.1 10.1 0.0 0.5
London 9.2 9.7 9.7 0.0 0.5
South East 8.7 9.1 9.1 0.0 0.4
Midlands 9.6 10.1 10.1 0.0 0.5
North 10.7 11.1 11.1 0.0 0.4
Scotland 10.5 10.0 10.0 0.0 -0.5
All Industrial 10.1 10.5 10.5 0.0 0.4
London 9.7 10.1 10.1 0.0 0.4
South East 9.4 10.0 10.0 0.0 0.6
Midlands 9.7 10.3 10.3 0.0 0.6
North 10.3 10.8 10.8 0.0 0.5
Scotland 10.1 9.9 10.3 0.4 0.2
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