UK out-of-town shopping centre values up in Q3

By

Cajsa Lykke Carlson

Published
Oct 29, 2015

Capital value at UK out-of-town shopping centres rose by 6% in 2015's third quarter. This was the second steepest increase since 2000, according to the CBRE Prime Rents and Yields Monitor.

It was also way above the 3.8% growth in values for in-town shopping centres, which underlines the demand for large, dominant destinations, CBRE said. There was also a 2.1% increase in out-of-town shopping centre rental growth. The overall shopping centre sector saw capital value growth of 4.5% and rental growth of 1.6%.

Natasha Patel, Associate Director at CBRE Research, said: “On the whole, we saw fairly modest capital value growth in Q3, but both rents and capital values in out-of-town shopping centres have grown remarkably. This rental growth is largely due to continued demand from retailers who are placing greater emphasis on dominant centres to strengthen their brand presence. The performance of these out-of-town sites has also contributed to a strong showing for shopping centres as a whole, pushing average yields in the sector down to their lowest levels in 15 years.”