Yields Stabilizing on UK Commercial Property Market

Central London offices are still the main source of good news in the occupational market, with activity and demand up, incentives down and headline rents increasing in the City. With a subdued pipeline, growth projections are being marked up and a period of strong performance is likely.

In the retail sector, better than expected Christmas trading has provided a fillip to the market but this is set against a weak 2008 and the fact that many retailers are not prospering. Moreover, as temporary Christmas lets are handed back and retailers re-evaluate their trading portfolios, availability will edge up further in some areas.

David Erwin, CEO of UK capital markets at Cushman & Wakefield said: “2010 has kicked off with a bang. Most investment agents have been busier in January than at almost any time since the late 1990's and there will be significant turnover in the next few months. Experienced vendors (including recent buyers) are taking profits whilst purchasers continue to seek stock which broadly remains in short supply. The current dynamics suggest the market is a win-win for buyers and sellers and it will be a busy run in to Easter.”