The London-based Investment Property Databank has reported almost identical end of year results for the Irish commercial property market as those posted by Jones Lang LaSalle. IPD put the all-property returns at 27.9 per cent compared with the 27.7 per cent measured by Jones Lang.

Capital values, according to IPD, were up 22 per cent through the year due largely to the underlying strength in rental values, which rose by 20.8 per cent. Rental value growth accelerated over that in 1999 across all three sectors of the market.

The slight dip in performance over 1999 was the result of a slowdown in the fall in yields. Over the 12 months all property yields were down a relatively modest .08 compared with a .51 drop through 1999. But property yields have risen in each of the last two quarters of the year. Capital growth of 6.2 per cent during the last three months of 2000 was the net product of a 6.5 per cent improvement in rental values, offset by a 10 basis point increase in yields.

Most of the adverse yield movements during the second half of the year can be traced to the office sector. Office yields shortened by just .01 points over the entire year, having edged up by .07 points during the last six months. A 24.9 per cent growth in rental values, however, ensured that offices remained the best performing sector of the market through the last year, with a return of 30.4 per cent.

IPD reported that a gap of 7.5 percentage points separates offices from industrials, the worst performing sector of the market in 2000. The industrial return of 22.9 per cent was down 4.9 percentage points on that for 1999. Rental value growth increased to 12.9 per cent, but yields fell by .21 points compared with a 0.72 reduction in 1999.

Retails, with a return of 24.5 per cent, were the only sector to improve upon their 1999 performance.