LONDON-The latest Catella regional rental indices show West End rents have seen their first significant fall for over 10 years. The agent puts prime rents at £72.50 ($107) per sf, down from £82.50 ($122) per sf. And in the City prime rents have fallen 8% to £57.50 ($85) per sf.

Other areas which have been hit by the fallout in the IT sector include Cambridge where rents have fallen from £24 ($35) to £21.50 ($32) per sf, a fall of 10.5%. Yet in nearby Peterborough rents have continued to rise from £12.50 ($18.50) to £14 ($21) per sf on the back of a restricted supply.

Catella identifies retailing as the strongest UK property sector at the moment, and director Gordon Wood said: “In the past six months the strength of the consumer market has been evident throughout Britain with 6 of the 21 centres reviewed showing a modest rise in retail rents and no centres showing a fall. Retail warehouse rents have shown dramatic rises, once again supporting the confidence shown by investors and retailers in out of town retailing.”