There was a slight slowdown in UK commercial property total returns this month, with the All Property figure dropping to 0.5% from 0.6% in July, according to the latest data issued by CB Richard Ellis. This was largely a result of a slight deterioration in retail sector performance, where continued rental weakness led to the first negative capital value movement since June 2009, albeit very marginal.

Elsewhere, returns held firm, with office returns at 0.7% again this month, whilst industrials saw a mild improvement, up to 0.6% from 0.5% in July.

'Central London offices remained the strongest sub-sector again in August, with total returns of 0.8% and capital growth of 0.4%. The Midtown market continued to outpace the other core London markets for the third consecutive month, offsetting slightly weaker performance in the City,' said Nick Parker, senior analyst at CBRE.

August saw little in the way of investment transactions, with £1.5 bn bought, compared with £2.7 bn during the same period last year. This was largely due to a drop off in UK institutional investment, which fell from over £1 bn last August to just under £400 mln this year.

The reduced tempo of UK institutional investment comes as no real surprise given the economic uncertainty at present, with many investors increasingly wary, the broker said.

Parker: 'Among the sub-sectors, high-street shops have seen renewed weakness, with three consecutive months of capital value falls, and values flat over the year to date. It is largely the more secondary locations that are really suffering, as vacant units continue to appear across many high streets. On the flip side, prime retail markets, such as Central London are still showing greater resilience, with rents growing and values continuing to rise.'