Leases are being agreed in the capital, for periods exceeding 10 years and are giving returns above 8%, property investment companies are calling the bottom of the market. Some say that the capitals commercial property market hit the bottom back in spring of this year, and they expect a steady rise in both capital values and rental returns. Some property companies are taking a slightly more cautious view because they are concerned there could be a drought in rental demand as the economy is still in the early days of the recovery.
The braver trail blazers of the UK commercial property markets point to an expected increase in demand, as the economy recovers. This could lead to a scramble, as companies rush to get back into the top locations, to take advantage of the recovery.