Commercial property returns 'hit 1.5% in January'

The returns from commercial property in the UK reached 1.5 per cent in January, according to new figures.

Research from CB Richard Ellis (CBRE) found that moderate capital growth of 0.9 per cent was recorded over the month, which was down from the record 3.3 per cent rise seen in December.

The central London office market was the strongest performing sector, with total returns of 2.2 per cent.

David Wylie, head of economics and forecasting at CBRE, said the figures highlighted an "unsurprising moderation" in the commercial property market's recovery.

"The breakneck pace of capital appreciation seen in the closing months of 2009 has moderated, but given the breadth and depth of investor demand currently seen in the market, total returns look set to re-accelerate in the coming months," he added.

Previous research from CBRE found that the UK logistics market showed resilience during 2009, despite the impact of the economic downturn.