Published: 02/05/2014

The rate of growth in UK commercial property rents continued in Q1, increasing by 1.1% and 3.0% over the last twelve months, according to the CBRE UK Prime Rents and Yields Index.

The rate at which the average prime yield is falling also accelerated with a fall of 10 basis points over the quarter to stand at 5.9% at the end of Q1 2014. Falling yields and rising rents resulted in a large uplift in capital values across all sectors. Capital values for all property increased by 2.9% over the quarter, with 9.7% capital value growth over the last twelve months.

This is the second consecutive quarter, where none of the yields recorded increases across any of the three main sectors. There have also been significant improvements in the rental market, with a growing number of locations recording either increasing rents or maintaining stable ones.