Insurance News Archive

Commercial buildings insurance holders 'unlikely to change rents in 2010'

Posted by Judith Stevenson

Commercial buildings insurance policyholders with retail property are unlikely to change rental prices this year, according to an expert.

Jason Sibthorpe, head of retail at GVA Grimley, said: "What we are seeing is where deals are being done, the incentive levels being achieved by occupiers are starting now to be squeezed a touch."

There are fewer commercial buildings insurance policyholders offering deals like rent-free occupation or capital contributions to attract retailers, he explained.

Mr Sibthorpe said that by definition, if there are less incentive packages, the rental value is likely to be improving, but the headline price will not effectively change.

Commercial buildings insurance policyholders are pushing much harder back on capital, compared to last year, he added.

Recent figures from Cushman and Wakefield found that average retail property rents declined by just over eight per cent in 2009, although London bucked the trend in the final quarter with prices increasing.

26 Feb 2010