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Will excess supply curtail the industrial rental recovery?

Development activity in the industrial property sector has picked up sharply over the past year or so in response to a doubling in the pace of industrial rental value growth. But with the economy set to grow by between 2.5% and 3% for the foreseeable future and real rental values still 6% below a long-run trend, we think there is scope for rents to rise by another 12% to 14% in nominal terms.

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