Commercial property investors 'increasing interest in offices'

Investors are becoming increasingly interested in regional office markets, according to new research.

The study by CB Richard Ellis (CBRE) found that sentiment in the area of the commercial property sector was growing thanks to the "rapid repricing" which has been seen over the past two years.

It was revealed there has been downward pressure on prime rents across all office markets, although many have been marginal in comparison with those seen in the London market.

Dr Peter Damesick, head of CBRE's UK research arm, said: "With a shortage of prime stock available, the gap between prime and secondary yields has widened.

"There is still a shortage of debt for property investment, but the market has not seen the wave of stressed selling that some opportunistic investors were expecting."

Previous CBRE figures revealed that the decline in average prime yields accelerated during the third quarter of 2009, particularly in the retail warehouse sector.