Recent figures have suggested that although British commercial property values remain stagnant, landlords are making a tidy profit from the rental payments they receive from tenants.
The Investment Property Databank (IPD) estimates that commercial property yields are currently running at around six per cent and this appears to be more than enough to encourage additional investment in the market.
Analysing the sector, BestInvest's senior investment advisor, Adrian Lowcock, claimed that yields have become the main selling point for many investors.
He told ideamarketers.com: "Before the downturn, the main objective was typically capital growth. Now it is more about the income that can be generated from property. There is more emphasis on retaining tenants and therefore generating a stable, guaranteed income stream."
In an interview with ft.com, Legal & General Property's director of research, Rob Martin, pointed out that many investors also liked to dip into the commercial property because it is a safer bet than stocks and shares.
It is thought that the majority of investors are entering the market through property funds as this is as seen as an investment with less risk attached.
Written by Joe Elvin on behalf of Qube Global Software
While posted by Qube Global Software all views expressed are not necessarily those of the company. All facts are verified where possible directly by the author.