Property values fell again in August

LONDON (Reuters) - Commercial property values sank by a further 2.1 percent in August, extending the market's correction from its peak a year ago to 21.5 percent, data from CB Richard Ellis (CBRE) showed on Tuesday.

The property services firm said total returns -- rental income and capital growth combined -- were on average minus 7.6 percent in the first eight months of 2008 across all three main office, retail, and industrial property types.

British commercial real estate values have sunk in the wake of a global credit crunch that has hurt investment demand for property by making debt funding scarce and undermined corporate tenant demand for space by hurting the economy.

CBRE is one of the biggest contributors to benchmark valuation data from Investment Property Databank, which is used for property derivatives trading.

(Reporting by William Kemble-Diaz; Editing by Sue Thomas)