M&G Investments believes positive sentiment is shoring up the market, although it has warned this may tail off later in the year.
Strong investor sentiment is underpinning the positive momentum in the UK commercial
property investment market, according to one investment group.
M&G Investments has said that the market is continuing to broaden, with good secondary property firming, although weaker estates are likely to remain vulnerable for the time being.
Fiona Rowley, manager of the M&G Property Portfolio, said that UK commercial property appears to have "good value" but the strong investment rally seen in the fourth quarter of 2009 is likely to cool off in the months to come.
"Conditions in the commercial property occupier market remain challenging, as weak tenant demand is causing rents to fall - we expect rents, on aggregate, to continue to fall for another 12 to 18 months," she added.
It follows news that ex-British Land head of retail Andrew Jones is seeking to raise £150 million through the flotation of Metric Property, an investment trust hoping to capitalise on commercial property loans.
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