UK commercial property capital values sank -0.3% in August, while rental values declined -0.2%, CBRE has reported.

However, total returns stayed positive at 0.2%, owing to income return of 0.5%, according to the firm latest monthly index.

Retail was the worst performer in August with a -0.8% decline in capital values, caused by a -1.9% drop in shopping centre values. Retail rental values also declined -0.7%.

Shopping centres were also behind retail’s negative total returns of -0.2% for the month. It was the only retail subsector to report negative returns at -1.3%.

Offices saw smaller declines in capital values in August with a -0.1% decrease in capital values, while rental values fell -0.1%.

Only outer London/M25 offices posted an increase in capital values, the first increase since February, at 0.2%. Average total returns for the sector were 0.3%.

The industrial sector was the only one to report growth with a 0.1% increase in capital values and a rise of 0.1% in average rental values. Total returns for the sector were 0.5%.

“At the all property level not much changed in August, rental and capital values are still experiencing small declines with returns remaining marginally positive,”

Toby Radcliffe, research analyst at CBRE said.

“With a deceleration in the rate of value decline, the office sector could be back on the path towards positive growth, not far behind the industrial sector.

“Meanwhile, declining values continue within the shopping centre subsector, making a positive end to Q3 seem unlikely for retail.”