An increasing number of investors now believe that the UK's beleaguered commercial property market has turned a corner, according to the new MarketBeat report from Cushman & Wakefield (C&W).
An increasing number of investors now believe that the UK's beleaguered commercial property market has turned a corner, according to the new MarketBeat report from Cushman & Wakefield (C&W).
The global property adviser says that a combination of a stabilisation in activity, downward pressure on prime yields and even some increase in finance availability, is evidence that early foundations are now in place for the UK market to begin recovery later this year.
In its report, C&W sounds a note of caution, however, both with respect to the health of the occupational market and the degree to which it is a lack of investment supply rather than performance prospects which are forcing yields down.
David Erwin, head of capital markets, C&W said: 'The market is clearly in a better place now than three months ago, however we now face the problem of seeing too little quality stock available for the number of investors in the market.
'As we move through the summer and buyers, vendors and the banks react to market conditions and the health of the tenant market, we will get a much clearer idea of where values lie and whether the short term spike in the investment market is sustainable.
'Some investors are already weighing up the potential to make sales into this market if yields drop further and it is clear that prime property still looks the best bet - now not only defined by location but also by the quality and length of income streams it produces.'
