Commercial property auctions in May saw sales volumes rise 25%in comparison with the corresponding period in 2013 while the average yield achieved by the properties sold sharpened by 90 basis points to 8.3%.

The latest cPad (Commercial Property Auction Data) report from Acuitus and IPD reports that this is the lowest All-Property Yield recorded since May 2012. Although the total of £99.78m of assets sold in the May auctions showed a year on year increase the sales rate was down to 70% from the 84% that was recorded at the February/March sales.  Acuitus auctioneer, Richard Auterac, comments: "This dip in the sales rate is a reflection of some over-optimistic pricing expectations from sellers on certain types of assets. “The recovery in retail sales is building from a low base and is distributed unevenly both regionally and across the retail hierarchy. Investor demand is similarly focused on the strongest retail locations so it is a mistake to think that because there is improved confidence and performance in some areas then this can be extrapolated to higher prices across the board.”

The leisure sector continued to strengthen in the May round of auctions with its share of sales increasing from 11% in February/March to 13% in May with year-on- year growth of 161%. Investors continue to be attracted to the long leases and buoyant businesses that the leisure sector offers and it looks to be an asset class which will stay in favour for the foreseeable future.

Looking ahead to the forthcoming round of July auctions, Richard Auterac comments: “Once again, cPad is painting a progressive picture, but it is clear that investors remain discerning and are highly precise in their stock selection and pricing”.