Commercial property total returns 'enjoy considerable improvement'

Figures from Jones Lang LaSalle (JLL) have revealed that commercial property investment returns improved over the third quarter of this year.

The body's Quarterly UK Property Index revealed that positive returns of 4.5 per cent were seen over the period, which is the highest figure recorded since the second quarter of 2006.

Capital values also rose by 2.5 per cent, which was a significant improvement on the figure of -3.7 per cent seen in the previous quarter.

Mike Penlington, director in JLL's valuation advisory team, said: "The marked improvement in investment performance clearly confirms that the market has turned, investors should however keep a close eye on income maintenance and yield movement in non-prime assets."

Earlier this month, research by the body revealed that there has been a substantial increase in available industrial space in the Western Corridor over the first six months of this year.

Vacancy rates particularly rose to 8.3 per cent in west London.