Quarterly Review: Q1 2014
Thanks to a strong UK economy the recovery is becoming much broader based. Investors are starting to look towards high quality assets away from the core market. This is placing downward pressure on yields. Capital growth rates have also been elevated as a result.
Occupier markets are improving rapidly as the economy recovers. Employment numbers are rising and, whilst the supply of high quality grade A space is dwindling, an uplift in rental values is anticipated.
Central London and South East offices are still seeing strong investor appetite as the “wall of money” continues to flow into the UK, driving up values and compressing yields further.