Strongest year for capital values since 2006

Office rental values recorded their strongest quarterly gain since 2011 in Q4. Yet at the all-property level, yield compression, rather than rental growth, proved to be the main driver of capital values. Indeed, the 16bps fall in all-property yields in Q4 took the annual decline to 54bps, helping to drive capital values 17% higher over 2015, the strongest pace since 2006.

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