A new report from the CBRE Group states that retail properties had the strongest growth in capital values and rents in the third quarter of 2013 compared to all other property types.

The CBRE Global Retail Capital Value Index rose two per cent in the third quarter, and eight per cent year-over-year. Comparatively, the Global Industrial Capital Value Index rose 1.4 per cent in the third quarter, while the Global Office Capital Value Index rose 1.1 per cent.

“Commercial real estate capital values generally rose faster than leasing fundamentals across all property types in Q3 2013, reflecting several capital markets trends that have been prevalent for some time,” says Raymond Torto, global chairman of CBRE Research.

According to Torto, there are three prevailing trends driving this growth. First, there have been strong returns in commercial real estate in comparison to other major asset classes. Second, there is a limited number of assets available for sale. Finally, it is expected that commercial real estate fundamentals will catch up with capital markets when regional economies recover.

The CBRE global capital value indexes show that capital flows continues to be the main growth driver in commercial real estate. There have been quarterly and annual gains for all property types.

The CBRE global rent indexes also showed positive growth. The Global Retail Rent Index showed the most growth, with a one per cent increase in the third quarter, and a four per cent increase year-over-year. This was a result of limited space availability and an increased demand from retailers.