UK Commercial Property Rentals Highest Level Since 2007

A new study by real estate research firm CBRE revealed a marked growth in commercial property rentals in the UK; its highest level since the third quarter of 2007.

Michael Haddock, senior director of CBRE, said there was:

"High growth in prime rentals in many UK markets. Prime yields also recorded a substantial improvement and reflected the growth in investment activity over 2014."

The study monitored 1,022 locations with research highlighting value for transaction reaching £61.7 billion in 2014 compared with £54.5 billion the year before. Central London, particularly, experienced the strongest rental value growth at 11.4% in 2014, compared with 8.1% for the UK as a whole.

Investment from overseas has been a big factor in the UK's growing property market over the last few years, with overseas demand for London property surging after the credit crisis left a large portion of the office space empty. Much of London's prime office space has been snapped up by Chinese, Middle Eastern and Brazilian investors over the past three years, with overseas spending accounting for 70% of London office turnover as of 2014.

According to Jamie Pope, director of CBRE, demand from overseas investors will remaining strong in 2015.

If you're interested in buying or selling commercial property, contact our commercial property solicitors on 0161 720 7200 for advice.

Ross Legal

Commercial Property Solicitors