Prime commercial property rents on the rise

Prime commercial property rents on the rise



Prime commercial property rents in the UK rose by 3.7% in 2016, according to CBRE’s latest Prime Rent and Yield Monitor.

This figure was down on the annual growth achieved in 2015% (5%), while Q4 growth for prime commercial property rental values rose by a mere 0.4% – the lowest recorded quarterly growth of 2016.

The industrial sector was the best performing area of the market with prime rents in 2016 growing by 6.5%%, followed by shops (5.4%), offices (2.8%), shopping centres (2%) and retail warehouses (1.2%).

London and North West industrial prime rents outperformed all other UK locations.

Overall, prime yields were up by 11% year-on-year, but experienced a slight quarterly fall from 5.5% in Q3 2016 to 5.4% in Q4.

Retail warehouses had the highest yield increase year-on-year of 34%.

Miles Gibson, head of UK research at CBRE was confident about the strength of the market despite uncertainty caused by the EU referendum last June.

“Despite 2016 being characterised by uncertainty in the UK’s political and economic landscape, prime commercial property sector has again shown its resilience with positive, albeit easing, growth in prime rents across all main sectors.

“The industrial sector in particular has helped steady the ship throughout 2016, outperforming the national average in every quarter.”


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