New research suggests that Britain’s commercial property market has enjoyed a healthy third quarter (Q3), and has performed well throughout 2017 so far.
According to the latest CBRE Monthly Index, total returns on UK commercial property reached 2.7 per cent in Q3 2017.
Over that same period, commercial property values were up by 1.4 per cent, driven by an unprecedented quarter-end surge from the industrial sector, the report reveals.
Rental values rose by 0.4 per cent, while capital values across the nationwide market were up by 0.6 per cent in September alone, despite being down by 0.2 per cent in Central London.
Meanwhile, over the course of the year so far, overall commercial property returns have risen to an impressive 8.2 per cent, despite previous forecasts from the Investment Property Forum (IPF) suggesting that returns would only reach a maximum of 6.7 per cent for 2017 as a whole.
Miles Gibson, Head of UK Research at CBRE, said: “The industrial sector continues to be the belle of the ball in 2017, with short supply and high demand resulting in strong performance.
“Despite the falling rental values reported in central London offices, overall results continue to show steady performance in the UK commercial property market,” he added.