The UK's commercial property market appears to be in a relatively stable condition, the latest CBRE Monthly Index has indicated.
Figures to the end of January were largely unchanged from December as the All UK Property segment recorded a total return of 0.3 per cent - the same as in the last month of 2012 - while annual total returns picked up slightly to 2.1 per cent and capital values slipped by 0.2 per cent, the same rate of decline recorded in the previous two months.
For the ninth month running central London offices were the only sector where capital values increased - up by 0.3 per cent - while the value of those outside the capital fell by 1.1 per cent. Overall retail values witnessed a fall of 0.3 per cent while retail warehouses experienced a smaller decline of 0.1 per cent.
Despite rental values remaining flat last month, offices in London - both central and non-central - saw rental growth of 0.8 per cent and 0.2 per cent respectively.
David Inskip, associate director of research for CBRE, explained that the report is indicative of struggles facing certain areas of the market, although the increasing confidence in some sectors had not yet filtered through to the commercial sphere.
"These figures show that the improved sentiment seen in equity markets and the broader economy since the turn of the year is yet to feed through into the UK property market," he commented.
"In particular, the decline in retail rents is a clear reflection of the troubles facing stores at present including a number of major chain administrations.
"Fortunately an improving outlook for household incomes should help to mitigate this as the year progresses."
As the commercial property market begins to stabilise, investors have been encouraged to focus on high quality stock in areas where demand is most intense in order to increase their chances of enjoying long-term profits and reduce the risk of experiencing losses.