The average lot size of commercial properties at auction rose by more than 16% last year, from £564,000 to £656,000, according to new research.
The increase was driven by new investor demand, according to Richard Auterac, auctioneer at Acuitus, which compiled the data together with cPad.
“More investors are using the auction platform,” he said.
“They are attracted by the prospect of higher returns than they can get on gilts and bonds, and also by the capital preservation that UK property can provide,” he added.
Rising investor interest helped to lift investment volumes by 30%, according to the research, while the range of stock targeted also expanded.
The average gap between prime and secondary commercial property yields achieved at auction narrowed by 90 basis points to 362 bps by the end of the year.
Prime yields also sharpened, with investors paying 3.75% for the best lots, the lowest yield seen in the auction room since 2007.
Auterac added: “With more stock now flowing into the room, more available debt finance and new investors utilising auctions, the outlook for 2015 is strong.”
