* Office total returns outperform retail, industrial
LONDON, Sept 14 UK commercial property price
growth remained steady at 0.1 percent in August, with offices
outperforming retail and industrial and taking the rise in UK
property values to 25 consecutive months, research showed.
Investment Property Databank's monthly index showed UK
offices produced total returns of 0.8 percent in August,
outstripping the 0.6 percent generated by industrial property
and 0.5 percent from retail.
Across all commercial property classes, total returns which
include the gains in property values and income returns, were
0.6 percent for August, IPD said.
"Retail assets continued to see declining values during
August, as the spate of economic difficulties, that impact on
consumer spending, continued," said Phil Tily, managing director
of IPD UK and Ireland.
IPD data showed offices saw capital growth of 0.2 percent in
August, while retail and industrial produced nil returns.
"While there continues to be a spread in improved
performance for offices throughout London, the same cannot be
said for retail, where outside of the city centre, yields have
begun to edge out over the last two months," Tily said.
Industrial property generated 0.6 percent income returns in
August, against 0.5 percent for both offices and retail. Income
returns across all commercial property classes was 0.5 percent.
"However, despite the rather gloomy economic headlines, most
areas of the market have held up surprisingly well, and rental
growth has not dipped into negative territory, remaining level
at zero," he said in a statement.
Over the past 25 months, UK commercial property values have
regained 17.7 percent, having fallen by about 45 percent during
the global financial crisis.
(Reporting by Andrew Macdonald; Editing by Elaine Hardcastle)