Even with already low commercial property yields, the low interest rate environment means that commercial property will remain attractive for investors. We expect further yield declines to drive capital values higher over the next couple of years, albeit at a slower pace compared to the near 20% rise last year. As yields start to rise over the latter part of the forecast period, rental growth will largely offset the impact on capital values. With higher yields on offer in the industrial sector, returns in each city will generally be better here than in their office and retail equivalents.
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