It’s hard to believe it, but we’re in the final furlongs of 2015, and what a year it’s been for UK commercial property: by the end of September over £50 billion had been invested in the market. If investment levels in the final quarter continue on this course (and there’s no reason why they shouldn’t), by the end of the year we’ll have seen investors put a record £70+ billion into the commercial market – the first time the £70 billion barrier will have been broken.

UK commercial property is seen by investors as a bastion of strength in an uncertain world: in the face of a slowdown in Chinese growth and Greece’s ongoing political and economic difficulties, UK property is the proverbial ‘safe harbour’, with investors ranking it above gold, UK shares and UK Government bonds as their favoured asset class. With a sentiment score of 53 per cent (up 6 per cent year on year), commercial property is head and shoulders above the second preferred asset – UK shares – which has received (relatively speaking) a piddling 24 per cent sentiment score.

So far this year 56 per cent of commercial property investment has taken place in the regions. The rental growth prospects afforded in some regional markets – where supply is constrained – plus the opportunity to acquire portfolios is certainly very attractive. This has not gone unnoticed by international investors, who had put £10.5 billion into commercial real estate outside London by the end of August 2015.

Our prediction is that non-dom commercial regional real estate investment will rise to £14 billion by the end of 2015, which will equate to a 20 per cent share of total UK commercial investment. The biggest challenge next year for investors will be finding the best locations for rental and income growth, as we expect capital value growth to continue to slow across the UK from 2016.

Further information

Read more: Market in Minutes: UK Commercial October 2015.