Despite an unstable economy, US commercial properties are continuing to grow in value, a new report has claimed.
Figures from performance analysis Investment Property Databank's US Quarterly Property Index show a 3.2% growth in capital during the second quarter, compared to a second quarter increase of 2.1%.
It is believed the rebound has been caused by yield compression, after returns shrank by a little over a half of one percent to 6.5%.
Managing director of Investment Property Databank (IPD) North America, Simon Fairchild, said: "The rebound in US real estate markets reflects the continued flight to quality, as investors move towards core assets where prices continue to rise despite the fragile broader economy.
"Capital is returning to the market and assets are beginning to trade as new lending is increasingly available."
The IPD US Quarterly Property Index measures $80.9 billion (£50.7 billion) worth of properties in mainly core open-ended funds.
Copyright © Press Association 2010
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