UPDATE 1-UK comm. prop. values up most in nearly 4yrs

* UK values rise for third straight month

* October rents fall 0.5 pct

LONDON, Nov 13 (Reuters) - British commercial property values rose 1.9 percent in October, the biggest increase in nearly four year, as the recovery in UK real estate market gathers steam, data showed on Friday.

The third straight month of improvement in the Investment Property Databank's (IPD) benchmark index was also the biggest since December 2005, bringing its total increase in the past three months to 3.2 percent.

The UK real estate market has rebounded since a 44 percent plunge in values from mid 2007, although concerns are rising that the recovery could be short-lived without growth in the economy and rental rates. [ID:nLA705280].

The IPD data, used as the basis for UK's property derivatives market, showed the occupier market continued to weaken, with average rents falling 0.5 percent on average last month, against a 0.64 percent decline in September.

All three property sectors posted positive value growth, led by retail at 2.6 percent, industrials at 1.5 percent, with office values growing 1.1 percent, IPD said.

All property initial yields compressed for the fifth straight month to 7.48 percent in October, it added. (Reporting by Daryl Loo; Editing by Andrew Macdonald) (See www.reutersrealestate.com for the global service for real estate professionals from Reuters)