Commercial Property News

Commercial property is still a viable long-term investment; however the market is set to experience a number of changes over the coming months.

This is according to new research from Invista Real Estate Investment Management, which concluded that various sectors and regions will perform "quite differently", resulting in a number of "peaks and troughs".

The firm noted that many buyers have increased the range of commercial property they are choosing to invest in, looking outside of the traditional prime, long-let sites.

Mark Long, head of investment strategy and research at Invista, noted that "commercial property continues to offer attractive long-term performance prospects underpinned by a high level of income return".

However, the company's report also warned that the occupier market is still weak, meaning that rental values are likely to decrease over the next one to two years.

Last week, Kelvin Davidson of Capital Economics forecast that there will be "further falls" in the value of commercial property over the course of this year and 2011.