The UK's commercial property market maintained its performance
throughout the summer months with August's figures mirroring that
of July.

According to the CBRE's latest Monthly Index August recorded
total returns of 0.2 per cent, with values again falling by 0.3 per
cent.

Across the year to date, capital values are said to be down 2.9
per cent with total returns at 0.9 per cent. Central London remains
the key performer, with values still growing despite values
continuing to fall elsewhere.

Central London's office market has boomed with values increasing
by 1.2 per cent this year, largely due to the focus of investors on
prime assets. Overall this has helped to stabilise all nationwide
office capital values, down just 1.7 per cent over 2012.

The picture remains somewhat bleak outside of the capital, where
the picture for the retail sector looks particularly subdued. Weak
occupier demand has softened values by 4.1 per cent elsewhere this
year.

Nick Parker, senior analyst of Economics and Forecasting at
CBRE, said: "Alternative sectors have continued to do relatively
well throughout 2012. Some of the assets that fit into 'Other
Property' offer more annuity style secure income streams for
investors, which is ultimately what investors have been targeting
since capital values stuttered last year.

"'Alternative' assets vary wildly in shape and form, from car
showrooms, gyms and cinemas all the way to hi-tech data centres,
very much a growing sector given today's need for server space and
capacity.

"The diverse nature of the sector means that it is difficult to
benchmark it versus others, but they have certainly outperformed
all other asset classes in the year to date, with values only
marginally down."

In order to increase occupier demand and make commercial
property more attractive to SMEs at Pall Mall Estates we offer a
number of reduced rent
properties, giving tenants a helping hand with the benefits of
a reduced initial rental period.

—