Commercial property market outlook Q3 2014

Cluttons has launched its Q3 2014 Commercial property market outlook report.

Against a strengthening backdrop commercial property is looking attractive.

Key findings from the report include:

  • Performance over the past quarter driven largely by yield compression
  • Commercial property remains fairly priced, 31% below 2007 peak, with all offices -25%, all industrial -28% and all retail -36%
  • Overall within the offices sector, Central London offices are still -4% below 2007 peak, although West End offices are up 5%
  • As London becomes more expensive investor appetite for regional markets strengthens
  • Sheds now competing with offices as performance leader.