24 October 2019 | Herpreet Kaur Grewal
Prime rents in the office sector increased 0.7 per cent in the third quarter of 2019, up from the 0.4 per cent reported in Q2, according to CBRE's latest Prime Rent and Yield Monitor.
Overall results were pulled up by East of England (1.4 per cent), central London (1.1 per cent), North East (0.9 per cent) and Yorkshire & Humberside (0.8 per cent). Prime yields for the office sector were stable in Q3 (1 basis point).
In the East and West Midlands, the Q2 decrease in prime yields was reversed, increasing 36bps and 7bps respectively. In Q3, Scotland (10bps) and Wales (9bps) also reported increases.
UK prime commercial property rental values rose 0.4 per cent in Q3 2019. This rise was driven by the industrials and offices sector.
Robin Honeyman, senior research analyst at CBRE UK, said: "Q3 results across the main sectors continued the trends seen in 2019 so far. A very slight easing of the downward pressure on retail prime rents meant all property rental growth returned to positive territory (Q2: -0.2 per cent)."