I've just been reading a really interesting article about the prospects for UK Commercial Property. The article basically confirms that the sector has been slow to participate in the upturn seen in other asset classes. This partly reflects the nature of commercial property where large transaction sizes and due diligence processes means it takes time for a rise in competition for properties to be reflected in prices.
However, in August the Investment Property Databank (IPD) reported the first monthly rise in average prices for UK commercial property in two years. This was followed by a 1.1% rise in September. The article goes on to discuss that current yields are well above the long-term average, which has historically indicated good value.
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