Commercial property prime yields 'declined in Q4 2009'

New figures have revealed that commercial property prime yields fell during the final few months of 2009.

The findings from CB Richard Ellis (CBRE) found that the average prime yield fell by 60bp in the fourth quarter, which highlights the change in investor sentiment seen in the second half of the year.

Prime rents grew over the period by 0.1 per cent, although rental values are now around 13 per cent lower than their peak in the second quarter of 2008.

Nick Parker, an analyst for UK research at CBRE, said improvements in the investment market had seen around £10 billion of property bought in the final few months of 2009.

He added: "There is still very much a clear divide between prime and secondary property, with yields in the secondary markets very much in the early stages of recovery, and prime-secondary yield spreads at a ten year."

The release of the research has come after CBRE confirmed it advised Universal Music Group on the £10.1 million sale of a warehouse in Milton Keynes.