- McKay Securities, a Real Estate Investment Trust specialising entirely in South East and London office and industrial markets, has reported that market conditions across its area remain positive.

The shortage in supply of good quality business space combined with stable levels of occupier demand, continue to generate growth in rental values.

It says that an increasing number of occupiers are prepared to look outside central London for better value, and higher rental levels are being achieved by new/comprehensively refurbished office buildings within the M4 and M25 corridors.

Capital values have also continued to increase this year across the Group's markets, although at a slower pace. Future increases are likely to be more reliant on rental growth and portfolio management than further yield compression.

The total occupancy level of the portfolio (by rental value), excluding development projects, increased to 93.5%, compared with 91.8% at the end of its last financial year.

At 10:23am: [LON:MCKS] McKay Securities PLC share price was +4.88p at 255.13p

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