Commercial property 'sees fourth consecutive month of growth'

The commercial property market benefited from positive capital growth for the fourth consecutive month during October, according to new research.

Figures from CB Richard Ellis (CBRE) revealed that capital values rose by two per cent over the period, with total returns reaching 2.7 per cent due to a strong month from both the retail and retail warehouse sector.

Offices also enjoyed further improvement, with total returns of 2.1 per cent.

Nick Parker, analyst for economics and forecasting at CBRE, said the picture "continues to brighten" for the sector.

He added: "It now looks almost certain that commercial property returns will end the year in positive territory, a remarkable turnaround after the sharp decline in values seen at the beginning of the year."

Previous research from CBRE found that investor interest in the UK is shifting in favour of the industrial and logistics market, which bucks the trend seen over the past two years.