Capital values for retail real estate posted their highest monthly rate of growth on record in March, according to figures from CBRE.

Capital values in the sector were up by 2.9% over the month, the agency said, taking growth in the first quarter of the year to 4.5%. Retail warehouses drove the upturn, while regional shops outperformed those in the South East and shopping centre growth edged up just 0.3%. Retail rental growth stood at 0.3% in March and 0.4% over the quarter.

Jennet Siebrits, CBRE’s head of research, said the growth in retail warehouse capital values was “a promising sign” that bodes well for the second quarter.

The office sector saw capital value growth of 0.5% in March and 0.9% over the quarter, with the strongest performance in outer London and the M25. Industrial real estate posted capital value growth of 3% for March and 6.6% for the quarter.

Across all sectors, a 2% rise in capital values in March took the Q1 total to 3.9%. Total quarterly returns, taking into account capital value growth and rental growth, stood at 1.9% for offices, 6.2% for retail and 7.5% for industrial.