The performance of the UK commercial property market fell
marginally last month in comparison to December, according to new
research released by CB Richard Ellis (CBRE).

The report revealed total monthly returns fell to 0.3 per cent
from 0.5 per cent in December 2011, while capital values also
declined slightly by 0.1 per cent.

Upon the release of this data, Nick Parker, senior analyst of
economics and forecasting at CBRE, said the small decline in
property performance was largely to be expected.

"Sentiment has been weakening in line with the global economic
slowdown since the middle of last year, and whilst it is a weak
start to 2012, performance this year will be largely dictated by
how events unfold in the Eurozone," he said.

Mr Parker reinforced the view that overseas investors in the UK
commercial property market hold the key to stabilising the market.
This demographic of investors was the driving force behind
increased transaction volumes at the back end of last year, with
£5.5 billion of investment ploughed into the UK commercial property
sector in December - a level Mr Park feels is "encouraging".

The CBRE report also suggested that, despite the view that
investors are now looking at opportunities to expand their
portfolio in other areas of the country, property investments in
London are still outperforming those elsewhere in the UK.

Earlier this month the IPD noted a growing divide between the
success of commercial property assets in the capital and its
secondary markets across the country.

Last year secondary office values plummeted by 7.7 per cent,
while London-based assets experienced growth of 5.3 per cent over
the last 12 months.

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