Industrial Rents Grow at an Increased Rate
Following an overall fall in rental values during the six months to May (0.1%), the All Secondary Rent Index grew by 0.2% over the last six months.
Rental values in the industrial sector grew by 1.4% during the last six months, an increase on the previous six months' rate of 0.8%. The increase has been led by London and Scotland which have experienced substantial improvements in their growth rates. Over the year as a whole, however, Scottish rental values have declined - the only region to see a fall in rental values.
Over the last six months, the office market registered a very marginal increase in office values - attributable solely to a correspondingly small increase in the South East region. However, over the year, no growth at all was experienced in this region. The greatest movement in this sector, over the last twelve months, was seen in Scotland where rental values fell by over 5%.
Marginal falls for the retail sector as a whole were experienced over both the six months' period and the year. Central London saw rental values rise throughout the last twelve months to reach a new high, although the rate of growth has decreased over the latter half of the year. Inner Suburban London also recorded rental value growth in excess of 1% over the last six months.
Yields
All Sectors Experience Rises
All three sectors experienced overall rises in yields during the last six and 12 months. With the All Property yield at 10.3%, it is now at a level last seen two years ago.
The All Shops yield, currently at 9.3%, is at its highest since May 1993. Movements over the year in the retail sector ranged from a fall of 0.1 of a percentage point in Scotland to a rise of 1.2 percentage points in Outer Suburban London. Despite the rise in Outer Suburban London, Inner Suburban London still remains the highest yielding region.
For most regions in the office sector, annual movements were accounted for by a rise in yields in the last six months alone. This has also been true for the All Office yield which rose 0.1 of a percentage point. Suburban London and Scotland have seen no change at all over the year.
The increase of 0.1 of a percentage point, over the year, in the All Industrial yield has been solely as a result of a 0.3 of a percentage point rise in Scotland. The only six-monthly change was recorded in Scotland - a fall of 0.1 of a percentage point to 10.2%.
Rent Index
6-monthly Annual
Change Change
Base (May 1984=100)
Nov May Nov Nov 94- May 95- Nov 94-
1994 1995 1995 May 95 Nov 95 Nov 95
Shops 252 251 251 -0.4 -0.1 -0.5
Offices 204 204 204 -0.1 0.1 0.0
Industrial 198 199 202 0.8 1.4 2.2
All Property 222 221 222 -0.1 0.2 0.1
Secondary Yields
Yield Movement
Nov May Nov May 95- Nov 94-
1994 1995 1995 Nov 95 Nov 95
Shops 8.4 9.0 9.3 0.3 0.9
Offices 9.5 9.5 9.6 0.1 0.1
Industrial 10.5 10.5 10.6 0.1 0.1
All Property 9.8 10.1 10.3 0.2 0.5
Rent Index
Base (May 1984=100)
Nov May Nov
1994 1995 1995
All Shops 252 251 251
Central London 227 234 238
Inner Sub London 234 239 241
Outer Sub London 256 253 254
Suburban London 254 254 255
London 248 250 253
South East 247 244 244
Midlands 273 274 271
North 208 199 199
Scotland 271 281 281
All Offices 204 204 204
West End 136 139 139
Fringe City 142 147 147
Central London 147 151 151
Suburban London 162 162 161
London 157 161 161
South East 215 215 217
Midlands 268 268 268
North 174 174 174
Scotland 280 265 265
All Industrial 198 199 202
London 164 166 169
South East 200 203 206
Midlands 188 192 193
North 171 173 176
Scotland 269 260 266
6-monthly Change Annual Change
Base (May 1984=100)
Nov 94- May 95- Nov 94-
May 95 Nov 95 Nov 95
All Shops -0.4 -0.1 -0.5
Central London 2.9 1.7 4.7
Inner Sub London 2.2 1.1 3.3
Outer Sub London -1.0 0.3 -0.7
Suburban London -0.1 0.5 0.4
London 1.0 0.9 1.9
South East -1.1 0.1 -1.0
Midlands 0.3 -1.1 -0.8
North -4.1 -0.1 -4.2
Scotland 3.9 0.0 3.9
All Offices -0.1 0.1 0.0
West End 2.1 0.0 2.1
Fringe City 3.2 0.0 3.2
Central London 3.1 0.0 3.1
Suburban London -0.3 -0.4 -0.7
London 2.1 -0.1 2.0
South East 0.0 0.9 0.9
Midlands 0.0 0.0 0.0
North 0.0 0.0 0.0
Scotland -5.3 0.0 -5.3
All Industrial 0.8 1.4 2.2
London 0.9 1.8 2.7
South East 1.5 1.2 2.7
Midlands 2.0 0.8 2.8
North 1.5 1.3 2.8
Scotland -3.4 2.3 -1.2
Secondary Yields
Yield Movement
Nov May Nov May 95- Nov 94-
1994 1995 1995 Nov 95 Nov 95
All Shops 8.4 9.0 9.3 0.3 0.9
Central London 8.2 8.7 8.7 0.0 0.5
Inner Sub London 9.1 9.8 10.0 0.2 0.9
Outer Sub London 8.3 9.0 9.5 0.5 1.2
Suburban London 8.5 9.2 9.6 0.4 1.1
London 8.5 9.2 9.4 0.2 0.9
South East 7.6 8.2 8.7 0.5 1.1
Midlands 7.7 8.2 8.6 0.4 0.9
North 8.9 9.4 9.6 0.2 0.7
Scotland 8.6 8.5 8.5 0.0 -0.1
All Offices 9.5 9.5 9.6 0.1 0.1
West End 9.3 9.5 9.5 0.0 0.2
Fringe City 8.9 8.9 9.0 0.1 0.1
Central London 9.1 9.2 9.2 0.0 0.1
Suburban London 10.1 10.1 10.1 0.0 0.0
London 9.7 9.7 9.8 0.1 0.1
South East 9.1 9.1 9.2 0.1 0.1
Midlands 10.1 10.1 10.2 0.1 0.1
North 11.1 11.1 11.3 0.2 0.2
Scotland 10.0 10.0 10.0 0.0 0.0
All Industrial 10.5 10.5 10.6 0.1 0.1
London 10.1 10.1 10.1 0.0 0.0
South East 10.0 10.0 10.0 0.0 0.0
Midlands 10.3 10.3 10.3 0.0 0.0
North 10.8 10.8 10.8 0.0 0.0
Scotland 9.9 10.3 10.2 -0.1 0.3
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