The UK commercial property investment market stabilised further in June, according to Cushman & Wakefield’s (C&W) Business Briefing.

Of its 25 key yield indicators, none have risen and six have marginally fallen as the weight of money from mainly overseas investors chases prime UK property assets. A further nine yield indicators are under pressure to fall in the near future.

C&W said that although the prime yield outlook was now at its most positive since July 2006, the occupier market remained under pressure. Of the 25 categories analysed, 21 face a weak outlook with unemployment expected to rise further into 2010, limited economic growth expected when the recovery does get underway and consumer spending and business investment likely to fall further in the short term.

The retail occupier market in particular is suffering from a polarisation in demand between prime space and secondary, most acutely in northern towns rather than in London and the South East and larger cities generally. Although there is some general consensus that the most significant retail casualties have already fallen, market conditions will remain tough for some time, according to C&W.