Commercial rentals end year on a high

Total returns across all type of commercial property rentals were close to 20 per cent in 2014, according to new figures.

The data from commercial real estate specialist CBRE, published on 8 January, showed a total return of 19.7 per cent for the last 12 months with capital value growth of 12.9 per cent.

The figures represent a marked improvement on 2013, when total returns stood at 11.5 per cent and capital value growth at 4.6 per cent.

Strong performers were industrial property (annual return of 25.7 per cent) followed by offices (22.7 per cent), although office returns varied depending on location. In the outer London/M25 area, offices returned 25.8 per cent but in the rest of the UK the figure was 19.3 per cent.

In contrast, in the retail sector delivered lower returns, with shops on 13.8 per cent, retail warehouses returning 16.6 per cent)and shopping centres 16.3 per cent.

As the current positive trend for commercial property continues, Palmers’ commercial property specialists can provide expert advice on a wide range of issues, including site assembly, leasehold and freehold acquisitions and disposals, property financing and joint ventures.

For more information on Palmers’ commercial property services, please visit our website or contact Carey Jacobs, Maisie Yau or Samantha Harrington.