Just as with the residential freehold market, demand for commercial space both from a buyer's perspective and that of tenants, has considerably outstripped supply. As a result, rents have grown by similarly dizzying proportions, giving an excellent return on investment to owners, but creating a tough environment for business. According to EFG Hermes, current rental yields now average 27%, a significant leap from the global average.

Yet with supply forecast to triple by 2010, it is likely that rental yields will return to something close to global averages by 2009. This is not to say that investment in commercial property is unwise. With 1,281 new business licenses issued in the first nine months of 2006 and net foreign direct investment increasing tenfold since 2000 to US$1.4bn, there will continue to be demand for premium space.

This kind of analysis is key to a successful foray into commercial property, either as a buyer or a leaser. Landmark Properties' Commercial Division caters to both markets, with insightful analysis of where is best to buy and where is best to rent.