Last month saw a distinct pick up in performance within all three of the main commercial property sectors in the UK. Total returns from the sector were 1.2 per cent and capital value growth was 0.7 per cent, CB Richard Ellis (CBRE) reports.
The consultant noted that retail property was the best performing sector over the course of the month, knocking offices from the top spot for the first time in over a year. Total returns from retail stood at 1.3 per cent during March, CBRE added.
Another shift was seen in shopping centre performance, which the firm noted was better than Central London offices for the first time in 14 months. Shopping centres saw capital values grow by 1.5 per cent with total returns of two per cent.
David Wylie, head of UK economics and forecasting at CBRE, said: "The most encouraging factor in this month's figures is that improvements in occupier markets are beginning to be seen in a number of sub-markets, notably Central London offices and retail warehouses."
He noted that this trend was helping to drive valuations ahead, reducing the reliance on further yield compression in the market.