CB Hillier Parker calculates that the average UK property yieldhas stabilised at 7.2%, after falling steadily over the first threequarters of 2002. And it warned that investors are likely to pursuemore selective investment strategies in 2003.

On the occupational side, the CB Hillier Parker rent index hasfallen for the second consecutive quarter as weak tenant demandcontinues to drag down rents in the Central London and South Eastoffice markets. And the glut of second hand space overhanging themarket is likely to depress office rents in the coming year. Butthe picture is brighter in the retail sector, where a buoyantconsumer economy should continue rental growth, albeit at amoderate pace, said the report.

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