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Yield compression will not extend into 2011 (Q4 10)

Commercial property occupier markets in most of non-euro-zone Europe appear to have bottomed out a little earlier than we had previously anticipated. Our forecasts now reflect this. Nevertheless, occupier market recoveries will be held back by weak economic growth, while we see little scope for yields to fall much further. That said, we are typically a little more optimistic about the prospects for returns in non-euro-zone Europe than in the single currency region.

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