MORE investors are putting money into commercial property, city law firm RPC said today.
According to the firm’s analysis of official figures, private investment in commercial property climbed from £5.8bn in 2012 to £6.6bn in 2013 – a 14 per cent increase. Financial institutions’ property deals a jumped to £7.4bn in 2013 from £6bn in 2012 – a 23 per cent jump.
“Commercial property is once again an asset class that is attracting private investors looking for higher yields in what is still close to a zero interest rate environment,” said Martin Barrett, head of real estate at RPC.
“The upturn in demand in the office market, both in and out of London, will have attracted the attention of private investors.”
Barrett believes prime London commercial property will appeal to high net worth individuals due to its occupancy rates, large lot sizes and market liquidity.