Our sense is that investor sentiment has improved in recent months and some are now starting to look ahead to the next commercial property recovery. Accordingly, although the current downturn is not over just yet, we think it is right to pencil in renewed, but modest, falls in all-property yields later next year. With rents set find a floor within a 12-month horizon, capital values should start to rise again in 2013, by perhaps 1% to 2% later in the year.
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