The UK commercial property market returned 1.3% in September, up from 1.1% in August, however, this was substantially lower than the average monthly return of 1.7% seen in both 2005 and the first half of 2006, according to the latest IPD Monthly Index.

The office sector posted monthly total returns of 1.7% in September, ahead of the 1.3% and 1.1% returns delivered by the industrial and retail sectors respectively.

Malcolm Frodsham, IPD’s new research director, said: “Offices have assumed the mantle of the top performing sector and the rental growth has begun to reward the investors that have driven the yields on the sector lower in recent quarters. Although growth to date is only modest, the broadly positive economic data flow suggests that offices can continue to benefit from the strong real economic conditions.”