The slump in the London office market continued with rents falling at 16.5% per annum and capital values at 9%, and this is pulling down the performance of the entire UK office sector with rental values down 7.5% and capital values down 4.1%.
In contrast retail remain strong, with total returns increasing slightly to 14.6% in January 2003 from 14.4% the previous month. Retail warehouses remain the driving force within the sector, reporting an annual total return figure of 17%, although annual rental growth in the market has eased to 3.2% from a peak of 4.9% last October.
Industrial market returns have continued to strengthen slowly, as total returns edged up to 10.1% in January 2003.
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