UK, commercial property market outlook, spring / summer, 2015

The commercial property market has continued to perform well in the past 12 months, powered by improved economic fundamentals, with an average income return of 6%.

Key findings from the report include:

  • With an average income return of 6%, it’s still a good time to invest in property
  • With prime yields now stabilising across most markets, income growth is replacing yield compression as the primary driver of future performance
  • Spectacular growth in Central London’s fringe office markets
  • ‘Tricky’ secondary property remains hard to sell across all market sectors

Key figures:

  • 23% (12 month office total returns).
  • 16.8% (12 month office capital growth).