The UK regions are beginning to see rental growth and yield compression thanks to a resurgence in prime offices, according to CBRE.
The agent’s Q2 prime rents and yields survey found overall commercial property rents had grown 0.7% in the three months to the end of June, continuing the strong growth seen in the first quarter.
The average prime yield also fell over the quarter, as in Q1.
While London and the South East have enjoyed consistent growth in recent quarters, CBRE said Q2 2013 was the first time the recovery could be seen spreading to other UK regions.
Offices across all UK regions performed well, with none recording a drop in rents.
The national prime office market recorded rental growth of 1.7% in the quarter.
London posted the strongest growth, with 5% in the last year and 1.7% over the quarter but several other markets also saw strong growth.
Retail however remained a polarised market, with rental growth in London and the South East, but a more negative trend elsewhere.
Nationally high street retail generated 0.7% rental growth in the quarter but the total fell to -0.6% when the South East was extracted.
CBRE Research analyst Aleksandra Starczynska said: “These results show that a more widespread recovery in the UK property market is starting to become apparent. After a long period during which rental growth and falling yields have been confined almost entirely to London and the South East, Q2 has seen more positive performance in the rest of the UK.
“This more positive trend in the UK real estate sector is in line with what is also being reported in the economy generally, through business surveys and other data.”