Office sector gets a boost as firms seek updated buildings

The trend for increased capital expenditure and M&A activity is spreading to the property sector as firms begin to upgrade their offices after years of delays.

In contrast to firms opting for short-term leases, the route chosen following the crisis, they are now actively considering new spaces for their business. This is a way of reinvesting cash back into the company, as well as a necessary requirement for some firms who remain in outdated buildings. Office space returned 1.8% over one month to 30 April, split between 0.5% income return and 1.3% capital growth, according to data provider IPD. In the first quarter of 2014 it returned 4.9%, split between 1.2% income return and 3.6% capital growth. Office space was the top-performing of four p...