Property fund managers are shifting their attention to offices at the expense of shops and shopping centres, according to figures from Investment Property Databank (IPD). For the first time in five years, offices were more in demand than retail last year amid fears that some investors have paid too much for shops in poor locations.

Property fund managers are shifting their attention to offices at the expense of shops and shopping centres, according to figures from Investment Property Databank (IPD). For the first time in five years, offices were more in demand than retail last year amid fears that some investors have paid too much for shops in poor locations.

According to the IPD report, some £3.8 bn of net investment flowed into offices last year compared with just £1.7 bn into retail. 'It's the opposite of three years ago, when the office investment market was dead on its feet,' said Malcolm Frodsham of the IPD.

The trend is emphasised by IPD figures showing that yields on offices tumbled from 6.3% to 5.5% during the year. Retail yields fell much less, from 5.4% to 5%.