Commercial property is showing signs of strong rebound in 2010

The commercial real estate sector in the UK has had a rough time over the last couple of years.

It saw almost half (44%) of its value wiped out in the 25-month capital downturn that began in summer 2007. Residential values, however, have not fallen anywhere near as much. According to Nationwide, house prices only fell by 19.4% from peak-to-trough. The commercial sector is showing signs of a much stronger rebound. Returns driven through income yields in commercial property have historically been higher than the yields in residential. According to IPD, an average UK residential investment currently yields approximately 4% net of costs, which compares unfavourably to the December 2009...