In Q3 2017, total returns for commercial property reached 2.7%.

Commercial property values increased 1.4% in Q3 2017, up from 1.2% in Q2 2017 and 1.3% in Q1 2017 thanks to a quarter-end surge from the industrial sector.

Capital values across the UK commercial property market increased 0.6% in September.

Rental values increased by 0.4% in Q3, up from the 0.3% recorded in Q2.

Miles Gibson, head of UK research at CBRE, said: “The industrial sector continues to be the belle of the ball in 2017, with short supply and high demand resulting in strong performance.

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“Despite the falling rental values reported in central London offices, overall results continue to show steady performance in the UK property market.

“Our index shows total returns of 8.2% for the year so far, already ahead of the IPF’s August consensus forecast of 6.7% for 2017 as a whole.”

Capital values in the office sector as a whole increased by 1% in Q3, but decreased by 0.2% in the City.

This was offset by a 1.1% increase in the outer London/M25 region and a 0.7% rise in the rest of the UK.

Rental values for the office sector fell by 0.1% overall and by 0.4% in central London.

Rental values for offices in outer London/M25 and the rest of the UK increased by 0.5% and 0.2% respectively in September.