Prime office and industrial rents still falling: King Sturge

Prime office and industrial rents are still falling, according to King Sturge's European Property Indicators survey. While London is seeing a lower rate of decline in the office sector, in Paris and Amsterdam prime office rents are still falling, the survey concluded. Meanwhile the industrial sector is stabilising in markets such as Madrid and Milan.

Further falls are expected in the next six months, but investment in the industrial sector has picked up and the majority of yields are on an upward trend, the survey found. While there are signs of stability, especially in London, the spread of office property yields remains wide across Europe.

The report is a quarterly survey of rents and yields for the office and industrial markets for 23 key European locations, set against a review of the economic outlook.