Out-of-town shopping centre values increased by 6% in Q3 2015, the second highest quarterly increase since 2000, according to CBRE’s Prime Rents and Yields Monitor.
The value of in-town centre values rose by 3.8% during the same period.
Rents also increased in out-of-town centres by 2.1%, although the high capital growth meant yield compression continued. Yields, now at 4.5%, are at their lowest level since 2000.
Overall, UK shopping centres saw capital growth of 4.5% and rental growth of 1.6%, the highest across all prime commercial property sectors, which averaged 2.2% and 1.1% respectively.
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.”
