The latest Investment Property Databank report indicates that rents and yields in the commercial sector are set to fall.
Rents and yields in the UK commercial property sector are "heading for the doldrums", it has been claimed.
According to the latest report from the Investment Property Databank, the early rapid recovery seen in the
commercial development sector is now firmly over.
This period of muted rental movements and yield compression is causing a dilemma for those investors looking to outperform the index.
Some want to enhance security with longer leases, while others hope to raise yields with a higher risk profile, according to the IPD research director Malcolm Frodsham.
"The better rental value growth and more secure income has enabled lower equivalent yield standard shops, offices outside of central London and industrials to out-perform assets in the same segment with higher equivalent yields," he added.
Morgan Stanley's
property investment arm recently claimed that there is a possibility that UK asset values will see a 20 per cent fall by 2015.
Posted by Tess Nelson.
Latest News 
