Transactions are off to a strong start in the UK in 2011 with turnover of significant commercial properties expected to approach £9.0bn in Q1, a nearly 50% increase from a year earlier. Emerging trends evidenced in Q1 include both a shift in investment away from London to other UK markets and from office to other property types. While prime yields remained relatively constant over the most recent quarter, national averages in the retail and office sectors did notch up slightly, due in part to the lower proportion of low yielding London properties. In addition, the changing underlying mix of assets trading with more smaller and lower quality properties, is also influencing pricing trends and further evidences movement of some capital away from prime, core assets.

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