Over the quarter to May, the All Property Rent Index rose by 0.5%. This compares with a 1% increase in the previous quarter.
As in the previous two quarters, the growth in the All Property Index has been provided predominantly by the office sector. However, the rate of growth slowed over the last three months, particularly in Central London, from 3.3% over the quarter to February to 1.1% during the last three months. Over the last quarter, Central London has seen a reduction in the levels of take-up although, in recent weeks, there have been signs of an improvement. [QQ]Retail rents increased by an average of 0.4% compared with rental value growth of 0.2% over the quarter to February 1995. The quarterly increase was even more pronounced in Central London which saw rents rise by 4.1%. This is in stark contrast to an increase of just 0.9% in the previous quarter. Central London, with an annual growth rate of 10.2%, was well above any of the other regions. This is as a result of a combination of strong demand and a lack of supply. This high demand may be due to retailers expecting an improvement in sales through increased tourism.
For the third successive quarter, the All Industrial Rent Index remained flat. Whilst steady demand has reduced vacant space, there is still sufficient supply in most locations. The majority of regions remained unchanged in terms of rental values over the quarter to May. Both the South East and South West experienced marginal rental growth of 0.1%, whilst Scotland saw rents fall by 1.8%.
Rent Index - Current Prices
Base (May 1977=100) May65 May70 May75 May80 May85 May90 Nov94 Feb95 May95 All Prop'ty 28 40 94 155 217 528 389 393 395 Shops 29 39 88 170 244 604 553 554 556 Offices 28 43 104 145 208 501 296 302 304 Industrial 28 37 85 156 181 400 337 337 337
Movement
Qtr Qtr Year 5-yr pa 30-yr pa Nov 94- Feb 95- May 94- May 90- May 65 Feb 95 May 95 May 95 May 95 May 95 All Property 1.0 0.5 2.9 -5.6 9.2 Shops 0.2 0.4 1.1 -1.6 10.3 Offices 2.1 0.8 5.5 -9.5 8.3 Industrial -0.1 0.0 0.4 -3.4 8.6
Rent Index - Inflation Adjusted
Base (May 1977=100) May65 May70 May75 May80 May85 May90 Nov94 Feb95 May95 All Property 87 106 127 107 105 193 124 123 122 Shops 89 102 119 117 118 221 175 174 172 Offices 86 113 140 100 101 183 94 95 94 Industrial 88 99 115 108 87 146 107 106 104
Movement
Qtr Qtr Year 5-yr pa 30-yrpa Nov 94- Feb 95- May 94- May 90- May 65- Feb 95 May 95 May 95 May 95 May 95 All Property -0.1 -0.9 -0.0 -8.7 1.1 Shops -0.9 -1.0 -1.8 -4.8 2.2 Offices 1.0 -0.6 2.5 -12.4 0.3 Industrial -1.2 -1.4 -2.5 -6.5 0.6
Rent Index - Current Prices
Base (May 1977=100) Qtr Qtr Year 5-yr pa Nov 94 Feb 95 May 95 Nov 94- Feb 95- May 94- May 90- Feb 95 May 95 May 95 May 95 All Shops 553 554 556 0.2 0.4 1.1 -1.6 Central London* 491 496 516 0.9 4.1 10.2 0.5 Inner Sub London450 454 458 0.8 1.0 1.7 - 3.8 Outer Sub London498 493 498 -0.9 0.9 0.0 - 2.7 Suburban London 481 479 483 -0.4 0.9 0.6 - 3.0 London 495 496 507 0.2 2.2 4.6 -1.6 South East 571 570 569 -0.2 -0.2 -0.1 -3.1 South West 553 541 541 -2.2 -0.1 -2.7 -0.8 East Anglia 707 713 716 0.8 0.4 2.0 -0.5 East Midlands 448 454 450 1.2 -0.8 0.5 -2.2 West Midlands 699 699 704 -0.1 0.7 -0.1 -2.3 Wales 739 739 739 0.0 0.0 0.3 -0.2 North West 535 553 562 3.2 1.7 7.7 0.1 Yorks & Humbs 463 464 467 0.3 0.6 -0.9 -2.3 North 551 553 563 0.4 1.8 3.0 -0.6 Scotland * 504 504 505 0.0 0.2 3.9 1.8 * 9.14m (30ft) Zone A. All other regions 6.1m (20ft) Zone A All Offices 296 302 304 2.1 0.8 5.5 -9.5 West End 348 359 368 3.1 2.6 8.6 -15.6 Holb/Marylebone 276 284 288 3.0 1.2 5.4 -18.1 Central City 263 273 274 3.5 0.5 9.3 -11.0 Fringe City 275 285 285 3.6 0.0 12.2 -14.4 Central London 296 305 309 3.3 1.1 9.2 -13.8 Suburban London 292 291 291 -0.1 -0.1 0.1 -6.0 London 288 296 298 2.6 0.8 7.0 -12.5 South East 319 322 326 0.8 1.4 2.7 -4.7 South West 606 609 609 0.5 0.0 1.3 -2.7 East Anglia 316 316 320 0.0 1.2 -2.2 -5.4 East Midlands 353 358 354 1.3 -1.2 0.1 -1.0 West Midlands 681 681 686 0.0 0.8 1.6 -1.8 Wales 387 387 380 0.0 -1.8 -1.8 -2.1 North West 444 447 447 0.7 0.0 3.2 1.1 Yorks & Humbs 371 371 371 0.0 0.0 0.0 1.4 North 248 251 251 1.4 0.0 1.4 1.4 Scotland 474 474 459 0.0 -3.1 -2.2 3.6 Industrial 337 337 337 -0.1 0.0 0.4 -3.4 London 370 370 370 0.0 0.0 -0.6 -4.4 South East 395 396 397 0.2 0.1 -0.1 -4.4 South West 386 387 387 0.2 0.1 1.0 -2.8 East Anglia 369 369 369 0.0 0.0 0.0 -5.2 East Midlands 373 368 368 -1.3 0.0 -2.6 -1.1 West Midlands 335 332 332 -0.9 0.0 2.1 -1.3 Wales 271 273 273 0.4 0.0 0.4 -3.2 North West 331 327 327 -1.1 0.0 6.6 -0.4 Yorks & Humbs 248 248 248 0.0 0.0 0.0 -1.6 North 245 253 253 3.2 0.0 6.7 2.7 Scotland 310 307 302 -0.8 -1.8 5.5 11.0
For further information please call Alan Patterson on 0171 629 7666, extension 2376 or write to him at Hillier Parker, 77 Grosvenor Street, London, W1A 2BT.