Commercial property 'strong in December 2009'

12 January 2010

Written by Steve Olejnik

Commercial property was very strong at the end of 2009, the latest CB Richard Ellis (CBRE) Monthly Index has reported.

It found that commercial property returns in December last year were at 3.9 per cent - ending 2009 at four per cent higher than when the year began.

A record monthly growth in capital values of properties was also noted by the company.

CBRE noted a 3.3 per cent increase in the values during December - the highest it has seen.

It is thought that retail warehouse demand is a key factor in this growth, since the category saw a 6.1 per cent increase.

Offices in central London lost value on the previous year by 2.1 per cent but this was still a monthly increase of 3.7 per cent.

Head of UK research at CBRE Peter Damesick said: "The sharply accelerating returns and value increases seen over the past few months inversely mirror the worst of the downturn seen this time last year."

Mr Damesick states that growth may have stemmed in part from overseas investors, who have put money into UK property.

CBRE has offices in 50 countries and is the leading commercial real estate advisor in the world.

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