The Investment Property Forum (IPF) has announced weaker than expected commercial property figures.
It revealed the commercial property outlook has worsened and reported a consensual total loss of -5.2 per cent, down from -2.6 per cent in March, Citywire has reported.
Head of research, Louise Ellison, said: "These markedly weaker figures than those reported in Q1 of 2008, reflect growing concerns regarding the wider economy."
She explained the proposed recovery of commercial property markets in 2009 "looks less certain".
In March pricing was predicted to fall 7.8 per cent this year and rents increase 1.1 per cent – they are now expected to drop 10.2 per cent and rise only 0.4 per cent respectively, Citywire has reported.
"The improved total return figures reported for 2009 in the last survey have fallen back and, while still showing an improvement on 2008, are nonetheless weaker," Ms Ellison noted.
Tony Ahearne, from independent ratings company, Moneyspinner, told Thisismoney.co.uk, the financial penalties imposed by fund managers on investors in commercial property may dissuade them from withdrawing their investments.