The falls in industrial rental values over the past few years have been much smaller than those seen in the early 1990s and also modest in relation to the depth of the 2008-09 recession. We suspect that this drop in the sensitivity of industrial rents to the economic cycle is likely to prove temporary rather than permanent, though further investigation may be needed. Even so, with a renewed recession likely this year, the bigger picture is that the downturn in industrial rents has further to run.
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