A new commercial property tracker suggests that prime rental values are on the rise, after having grown by 0.7 per cent over the second quarter (Q2) of 2017, reports Richard Spector, Managing Partner at ELS Legal.
The figures come from the latest Prime Rent and Yield Monitor published by the CBRE in recent days, which recorded strong growth in the industrial sector in particular, where rents climbed by 2.7 per cent over the period.
Industrials in London and South East England performed particularly well, enjoying growth of 3.6 per cent and 3.8 per cent respectively.
However, industrial commercial property rents in the East of England outperformed the rest of the UK, up by 6.6 per cent in Q2.
Despite strong growth in the industrial sector, prime rents in the office sector fell by -0.2 per cent in Q2 – but CBRE has noted significant regional differences here, particularly in and around the City of London.
While prime rents in Central London fell by -1.3 per cent, those just north of the M25 rose by an impressive 3.2 per cent.
Miles Gibson, head of UK research at the CBRE, welcomed the results, exclaiming that the figures reflected “the resilience of the prime commercial property sector.”
He added: “Despite earlier fears, this quarter’s political events, notably the UK General Election, have had no noticeable effect on performance of prime UK property.”
About Richard Spector: Managing Partner Richard specialises in property and commercial litigation. Richard has acted in a number of high profile cases and was heavily involved in the litigation that arose from the collapse of Lehman Brothers. Richard has been involved in a number of cross-border litigation cases and recently acted successfully for the Claimants in Harlequin Property (SVG) Ltd & Anr v Wilkins Kennedy, listed in the Lawyer’s top 20 cases of 2016.