October 17, 2001—CB Hillier Parker claims the economic slowdown is continuing to affect the commercial property market and says rental values have only increased by 0.4% in the third quarter of this year.
The CB Hillier Parker All Property Rent Index slowed for the third consecutive quarter and the 0.5% increase in the three months to August was the lowest since 1994.
In the office sector, the quarterly growth of just 0.1% was also the lowest since Q1 seven years ago. The annual rate of growth remained at 10.3%, but this is expected to slow dramatically early next year according to CBHP.
The rent and yield data was compiled before the terrorist attacks in the US. The property consultancy said: “It will take many months before the full impact of these events on the global economy becomes evident.”
However, it claimed the UK property market is well positioned to weather a short-lived downturn in demand, due to the current highly restricted availability of new space.
Like property advisor GVA Grimley, CBHP believes the strength of domestic demand makes a recession in the UK unlikely.
—Jessica Jarlvi
Reprinted with permission; copyright 2001 i-FM
