RICS: Commercial property data

Commenting on the latest Investment Property Databank (IPD) data, Oliver Gilmartin, RICS senior economist said: "Today's IPD data has confirmed that a repricing of risk has taken its toll on the commercial property values in September. Monthly returns from commercial property fell 1.2% in September the lowest return in over 17 years as capital values fell 1.6%, wiping approximately £13.8 bn off the value of UK commercial real estate . In addition, the first signs have emerged that credit market turmoil is having an impact on the office sector with annual growth in office rents easing in September, having risen firmly in August. RICS believe that office rental growth has peaked with returns set to slow across the board over the next 2 years."