Specialised Property February 1995 - Retail Warehouse Capital Values Fall

The capital value of retail warehouses fell by over 2.0% during the six months to November. This was despite a rise of 3.0% in retail warehouse rent values. However, in the previous six months to May, rent values grew by 3.7%. This would indicate a slow down in rental growth. The fall in values was therefore, predominantly due to yield movement - a 0.4% point rise from 7.0% to 7.4%, during the last six months.

With the exception of the North West, office parks in all regions either remained flat or saw marginal increases in their rent values. Only London, the North West and Scotland saw their yields fall marginally over the six months to November. All the other regional yields remained flat.