Economic and political uncertainty is impacting on the UK office market, new figures suggest.
According to CB Richard Ellis’ (BBRE) latest Monthly Index, the rise in average values of commercial property during April slid to one per cent. During March, growth had stood at two per cent.
Mr Wylie said: “With a number of factors clouding the short term outlook, not least the election and some renewed nervousness in financial markets, property returns have moderated in April.
“However, UK property remains attractively priced relative to other asset classes, with the All Property equivalent yield at seven per cent.”
Despite the UK-wide slowdown, the commercial property adviser’s survey also revealed that London office space continues to outperform other sectors, delivering total returns of 2.9 per cent. This compared with 1.4 per cent for retail space.
A separate CBRE study recently found that 4.2 million sq ft of central London office space was leased during the first quarter of 2010.