Commercial property recovery in five years - research

BNPRE research shows the value of offices, shops and warehouses has dived by 45% in just two years. It says the recovery in those capital values will be stalled by weak occupier demand and will struggle to reach the over-inflated pricing of 2007. Retail rents are expected to keep falling into 2011, hit by diminishing household incomes, before rebounding at an average 5.4% in 2011, 2012, 2013 and 2014. In all sectors, BNPRE predicts values will rise 31.5% from December 2009 to December 2014. The occupier market, which lags the investment market by about 12 months, will gain just ...