In Q3 2017, total returns for commercial property reached 2.7%.
Commercial property values increased 1.4% in Q3 2017, up from 1.2% in Q2 2017 and 1.3% in Q1 2017 thanks to a quarter-end surge from the industrial sector.
Capital values across the UK commercial property market increased 0.6% in September.
Rental values increased by 0.4% in Q3, up from the 0.3% recorded in Q2.
Miles Gibson, head of UK research at CBRE, said: “The industrial sector continues to be the belle of the ball in 2017, with short supply and high demand resulting in strong performance.
- CPD-accredited FP Show to host brand new property hour
- 40-acre logistics development site acquired
- Royal Mail distribution warehouse sold for £48.8m
“Despite the falling rental values reported in central London offices, overall results continue to show steady performance in the UK property market.
“Our index shows total returns of 8.2% for the year so far, already ahead of the IPF’s August consensus forecast of 6.7% for 2017 as a whole.”
Capital values in the office sector as a whole increased by 1% in Q3, but decreased by 0.2% in the City.
This was offset by a 1.1% increase in the outer London/M25 region and a 0.7% rise in the rest of the UK.
Rental values for the office sector fell by 0.1% overall and by 0.4% in central London.
Rental values for offices in outer London/M25 and the rest of the UK increased by 0.5% and 0.2% respectively in September.