Offices star in JLL quarterly index
In the final quarter of 2010, All Property total returns slowed to 2.2% from 2.4% the previous quarter, according to the Jones Lang LaSalle Quarterly Index. The firm noted that following a better performance by all sectors in December, capital value growth remained at 0.9%, taking the growth in capital value for the year to 8.4%. JLL points out that this return compares with 7.4% for equities and –3.5% for gilts.
Offices were of course the strongest sector: JLL recorded returns of 2.7% and capital value growth of 1.2% in this sector, and notes that offices also saw growth in rents, at 0.5% for the quarter, compared with a negative result on average for all property of –0.2%. Rents for Retail properties were down 0.2% and were 0.3% lower for industrial properties.
The firm has noted a continued divergence between prime and secondary assets when it comes to investment performance. It expects to see investor appetite for prime assets to continue, while it forecasts that secondary space will encounter further downward pricing pressure.
