UK commercial property recovery losing steam
Growth in British commercial property prices slowed for a second month in February, a closely-watched index showed, denting a recovery seen in the last quarter of 2016 following Britain‘s vote to leave the European Union.
The value of British commercial property assets grew 0.17 % in February compared with January, according to MSCI’s IPD real estate index, overshadowing largely stable rental growth, with total returns falling to 0.625 percent in February from 0.71 percent in January.
The IPD real estate index is one of Britain’s most widely watched commercial real estate data surveys, and tracks about 10.5 percent of professionally managed British property across all sectors, including retail and office property.
The February index was based on data from 3,046 property investments with a total capital value of 44.6 billion pounds ($55.04 billion), MSCI said.
Many occupiers have curtailed expansion plans after the Brexit vote, dampening expectations for rents and making buyers and owners more cautious.
Great Portland sold the Facebook London headquarters building at a discount, while British Land managed to secure an above valuation price for the Cheesegrater city office building.