■ The recovery in the UK commercial property market was further confirmed this year. Capital value growth, for the IPD Monthly Index for Offices, is showing 21% growth in London over the last year, with an 8% growth in the rest of the UK.

■ There is growing confidence to invest outside of London and this has been led by the UK institutions, particularly for the office sector.

■ We expect regional yields in tier one cities will reach sub 5% by the end of the year.

■ Severe lack of available stock, in particular Grade A, has led to a pick-up in investor demand for secondary assets in strong locations.

■ The first half of 2014 saw a marked change in sentiment within the regional office markets, which is now reflected in the take-up figures.

■ Rents have started to show growth in key cities, with definite signs of incentives shortening in the majority of the regional cities.

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■ Economic and financial uncertainty have hit a four-year low. Despite geopolitical issues, which knocks global confidence, the UK is on a stronger path of occupational demand recovery. News flow, both positive and negative, has come in equal waves during the past few months, however, analysts remain bullish and suggest that the corrections are due to the markets adjusting to the anticipation of higher interest rates.

Taken from
Spotlight: Regional Office Market Report - October 2014