Rogers Chapman forecasts that aggressive rent cutting and generous incentives on grade A properties will reinforce the preference for grade A quality space, with many companies taking the opportunity to upgrade their accommodation. As a result any reduction in the best stock will be counterbalanced by an increase in poorer quality space that will be returned to the market.

And any recovery in the market is likely to be slow and gradual. "In our view, both the office and the industrial markets need to get worse before they can get better; we expect to see a further adjustment in rents to free up the market", said director John Izett.

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