Fall in commercial property is slowing - Business - Evening Standard
       

Fall in commercial property is slowing

Rents and prices in the battered commercial property market look set to keep falling this year and next, albeit at a slower pace than previously thought.

That is the verdict today from the Investment Property Forum, which said it expects average capital values to fall 18.4% in 2009 and 2.3% in 2010 before growth of 2.7% in 2011.

The falls this year and next were better than the 21.6% and 4.9% declines predicted in May. Commercial property values have dropped 44.2% since their peak in June 2007. "All the figures suggest the outlook for 2010 is strengthening," said IPF.

"Falling capital value growth is expected to ease through 2010 and turn positive in 2011."

The rental outlook for commercial property remains poor, with the weak UK economy depressing average rents by 12.1% this year, 8.2% in 2010, and 2.6% in 2011.

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