UK, commercial property market outlook, Q4 2014

Cluttons has released its UK commercial property market outlook Q4 2014 report.

Key trends highlighted in the report include:

  • Performance in Q4 will largely be driven by yield compression and selective rental growth. We forecast total returns of 19% for 2014
  • Some of the anticipated strong performance for next year is shifting towards Q4 2014, as market performance may be stabilising
  • We forecast the shed market to outperform offices in 2015, bucking the dominant trend of the office sector since 2009
  • Commercial property remains fairly priced at circa 28% below the 2007 peak
  • Underlying uncertainty in the global economy that is being reflected in volatile financial markets may dampen property returns going forward.