Written by: Steven Jones on Tuesday 17/05/2016
UK commercial property assets of all varieties increased their rental values by 1.4 per cent on a collective basis during the first three months of 2016.
That’s according to the latest figures on the subject, which show that rent levels associated with commercial properties throughout the country are currently on an upward curve.
Indeed, at a quarterly growth rate of 1.4 per cent, the rent value increase in Q1 2016 matches the same figure for the final three months of last year - which was the highest growth rate recorded since 2007.
The figures cover all forms of commercial property whether they are used as offices, retail spaces, warehouses or industrial premises of any kind.
Of these sectors, commercial properties categorised as being prime industrial real estate recorded the strongest rent value growth in the first quarter of this year.
At a rent value growth rate of 2 per cent, prime industrial properties across the UK reportedly managed the third sharpest increase recorded during any three month period since as long ago as 2001, according to the latest data.
Meanwhile, the values associated with office space in London continued on a relatively sharp upward curve and increased by 2.6 per cent on average as compared with the last three months of 2015.
The average cost associated with renting prime office space in the City of London jumped by 4.6 per cent in the quarter and the Docklands areas that include Canary Wharf saw average prime rental increases of 5.4 per cent in the period.
Other areas which saw notably strong commercial property rent value increases in the first quarter of this year included the West Midlands, where plans for the High Speed 2 (HS2) rail link are understood to have prompted an increase in investor interest and buyer activity among landlords.
The BBC recently reported that the main offices of the organisation tasked with planning and delivering the HS2 project are soon set to be relocated from London to Birmingham.
HS2 Ltd is expected to employ close to 1,000 people from its offices in Birmingham while retaining smaller teams in the capital.