RICS Global Survey Shows Declining Rentals
Commercial rental expectations have deteriorated further, according to the latest Royal Institution of Chartered Surveyors (RICS) Global Commercial Property Survey. In the second quarter of the year, RICS reported the sharpest declines in global commercial property rents in the survey’s five year history, with Singapore, Ukraine, Spain, and Ireland leading the way. In the United States, tenant demand is still declining but has slowed somewhat. Notwithstanding continuing attempts by agents to offer more attractive inducements, the rental outlook for the near future is bleak. RICS chief economist Simon Rubinsohn, says that rental declines will weigh on property pricing across many developed economies into 2010, reflecting both rising availability and weaker labor markets.