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Rents up 1.6% in second quarter

Coins-graph-up-THUMB.jpegRents have risen by 1.6% over the past three months across the commercial property sector.

The second quarter of 2015 also saw prime yields drop six basis points to 5.4% across all property types, according to CBRE.

That compares to an 11 basis point shift in the first quarter, with prime capital growth also softening in Q1 from 3.4% to 2.6%.

falling yields were reported in 30% of locations over the second quarter compared with 21% in the first.

The strongest performing sector was industrial, where prime rents rose 2.6% – the highest rate since Q1 2001.

London posted a 2.2% rental increase, with the East of England rising by 2.8% and the South East by 2.5%.

mike.cobb@estatesgazette.com

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