Reported on Thu, 19 Jan 2006

Britain's commercial property investment market, including commercial mortgages, "continued to ride high" last year according to property adviser King Sturge.

The total return on office, high street and industrial buildings is likely to be more than 16.3 per cent in 2005.

The increase has been put down to a number of factors, including companies and organisations rebalancing their portfolios in favour of property.

King Sturge stated that commercial property in the UK will continue to give good returns this year as economic stability, restricted supply and long leases will carry on attracting investors.

However, the 2005 levels are unlikely to be reached, as investment will be "strong, but less frenzied".

Edinburgh is one of the UK cities to perform extremely well in this sector and King Sturge believes rental rates will head towards £30 per sq ft in 2006.

Commenting on the city's investment market, King Sturge partner Chris Macfarlane told the Edinburgh Evening News: "All sectors in Edinburgh have performed well in 2005 and this looks set to continue into 2006."

If your firm is thinking of buying a commercial property, then it will need to get a competitive commercial mortgage to afford it.

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