Prime retail rents grew faster in 2000 than in recent years, rising by 8.7 per cent compared to 6.9 per cent in 1999, according to the Lisney Rental Indices. Last year's increase was mainly a result of new open market lettings on Henry Street, which helped push rents at review upwards. However, the agency says there is still a general perception that rent reviews are not reflecting open market value - and the expectation is that they will rise further.

Lisney reported that modern office rental growth slowed slightly in the second half of last year. Growth for the year as a whole was 24.3 per cent compared to 33.3 per cent in 1999. The agency attributed the slowdown mainly to the increased supply in out-of-town locations. City centre rents continued to grow, rising by 27 per cent. The continuing pressure on space in the city saw rents for Georgian buildings increase by 50 per cent as against 33 per cent the previous year. Industrial rents increased by 6.5 per cent last year, down slightly on the 10.7 per cent in 1999.