Healthy third quarter for commercial property market
All across the country, commercial property performed strongly in the third quarter (Q3) of 2017, with total returns reaching 2.7 per cent, up-to-date figures have revealed.
Research from the CBRE suggests that a quarter-end surge in activity in the industrial sector bolstered the market towards the end of Q3.
It adds that commercial property values rose on average by an impressive 1.4 per cent over values recorded in Q2.
During the same period, average rental values also rose by 0.4 per cent.
However, while average capital values were up by 0.6 per cent on a nationwide basis, capital values in Central London actually fell by 0.2 per cent.
Nevertheless, Miles Gibson, Head of UK Research at the CBRE, said that the latest Monthly Index reflected “steady performance” across the market.
“The industrial sector continues to be the belle of the ball in 2017, with short supply and high demand resulting in strong performance,” he said.
The report also revealed that overall commercial property returns for 2017 so far had surpassed forecasts.
Previously, the Investment Property Forum (IPF) had anticipated returns of 6.7 per cent for 2017.
However, the CBRE’s figures suggest that returns have already soared to 8.2 per cent in the first three quarters of the year alone.