Even with already low commercial property yields, the low interest rate environment means that commercial property will remain attractive for investors. We expect further yield declines to drive capital values higher over the next couple of years, albeit at a slower pace compared to the near 20% rise last year. As yields start to rise over the latter part of the forecast period, rental growth will largely offset the impact on capital values. With higher yields on offer in the industrial sector, returns in each city will generally be better here than in their office and retail equivalents.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to gain:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services