Commercial property is bouncing back, according to the latest monthly results that show average yields increased by 1.1% in August, taking the year-on-year figure up to 5.2%.
Capital values inched up 0.5%, pulling growth over the past 12 months up to 0.1%.
Each of the three main sectors showed increasing returns – offices were up 1.5%; retail up 0.7% and industrials followed the rest, up 1.4%, according to the data from property consultants CBRE.
Offices outside the M25 performed the best, showing a yield of 1.3% for the month and capital values going up 0.6%.
This was the first capital growth in the sector since October 2011, said the commercial property study.
Capital values for Outer London offices saw a rise of 0.9% and a return of 1.6%, while Central London matched the performance with a 1% increase in capital values and a total return of 1.5%.
High street shops, warehouses and out-of-town shopping centres are also making a come back as customers enjoy more confidence in the economy.
Capital values were up 0.2% for the month, while the total return was 0.7% – but rents declined by 0.1%.
Industrials hit four months in a row of increases in value. The August figure was 0.8% and the total return 1.4%.
The best rental growth performers for the month were City offices – up 0.7% – and Central London – up 0.4%.
However, commercial property returns are still below the last peak in August 2011 for each of the sectors, although offices have led the way for most of the time, doggedly tracked by industrials, with retail showing as a poor third.
The same can be said for capital growth, although the gap between offices and industrials is wider and retail lags in last place.