Industrial commercial property rents 'hit by consumer demand'

Rents on industrial commercial property dropped by 5.5 per cent over the course of 2009, new figures have shown.

The research by Cushman & Wakefield revealed that rents, which are a key indicator of economic performance, were hit by a fall in consumer demand for goods during the recession.

However, rent increases are expected during 2010, particularly due to the speed in recovery of global export activity.

Barrie David, senior research analyst at Cushman & Wakefield, said an upturn in exports and rise in production meant rents did begin to improve at the end of last year.

He added: "The outlook is certainly more upbeat for 2010 and a sustained recovery in global rents should shadow a similar recovery in the global economy generally by year end."

Recent figures published by Savills revealed that German banks are increasingly lending to investors and businesses taking up commercial property in the UK.