This is contrasted by prime yields which fell by 4bps across UK commercial property in Q1.
Prime rents in the office sector fell by 0.4%, but there was a notable regional difference with prime office rental values falling by 1.4% in central London, but growing by 1.4% in the rest of the UK (excluding the South East and East).
Miles Gibson, head of UK research at CBRE, said: “Following an uncertain 2016 and with the potential for further change in the political and economic landscape in 2017, Q1 2017’s results continue to demonstrate the resilience of the prime commercial property sector.
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“The quarter’s positive growth in prime rental values provides an optimistic outlook for the year.
“However, 2017 will not be without its challenges, particularly if weaker economic growth feeds through to slower tenant demand.”
The industrial sector grew by 3.3% in Q1 and for the second consecutive quarter recorded the largest increase in prime rental values of the main sectors, with prime rental values for industrial property in the South East and Eastern markets outperforming all other locations.
Industrials in the rest of the UK experienced no change in prime rents.
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