Commercial property returns continue to stabilise

New research from CB Richard Ellis (CBRE) has revealed that commercial property returns in the UK are stabilising.

The consultancy firm's latest monthly index has claimed all property total returns stood at -0.1 per cent in June when compared to May, while the figure was -9.4 per cent lower than 12 months earlier.

Commercial property values are believed to be around 44 per cent below their peak in the middle of 2007.

David Wylie, head of economics and forecasting at CBRE, said: "The stabilisation in total returns suggests that the long and sizable outward yield shift since the market peak has finally run its course."

James Roberts, head of central London research at consultancy firm Knight Frank, recently claimed "encouraging signs" are particularly emerging in the city's commercial property market, as firms in a number of sectors have completed deals.