Prime rental growth for UK commercial property remained steady in the second quarter of 2011, according to CB Richard Ellis' latest Q2 Prime Rent and Yield Monitor. There was only a marginal decrease of 0.1% in the headline index, a slight deterioration on last quarter's modest growth.

Prime rental growth for UK commercial property remained steady in the second quarter of 2011, according to CB Richard Ellis' latest Q2 Prime Rent and Yield Monitor. There was only a marginal decrease of 0.1% in the headline index, a slight deterioration on last quarter's modest growth.

The divergence between sectors continues, the research found, with offices and industrials seeing small positive gains whilst the retail sectors saw a small downturn. However, Central London retail and office occupier markets remain buoyant despite a slowdown on the impressive growth seen last year.

Prime yields saw only minor downward movement this quarter, falling by 5 basis points to 6.1%.

This was largely due to declines in the retail warehouse and Central London markets, where investor appetite is still forcing yields down. However, overall investment transactions in commercial property in Q2 were down on Q1, with investor demand for good quality assets frustrated by limited availability, the report said.