More than a quarter of Irish commercial property income is over-rented, research by IPD shows.

Sweeping declines in rental values has led to widespread over-renting across all sectors, reaching 26.3 per cent by Q2 2010, according to the SCS/IPD Irish Quarterly Index.

Speaking at the IPD/SCS Quarterly Briefing, IPD research analyst James Scott said: “Significant falls in net income growth have not followed on from the deep rental re-pricing, as would be typical. Instead income streams have remained robust due to the nature of long Irish leases and the still operating upwards-only rent review structure.”

The IPD/SCS Quarterly Briefing was attended by valuers and investors at Dublin’s Conrad Hotel last Friday.

Peter Stapleton, president of the Society of Chartered Surveyors and chair of the event, told delegates that the benefits of National Asset Management Agency strategy, which was set up by the Irish Government last year to help restore bank lending by acquiring underperforming commercial property loans from domestic banks, would soon become visible.

Stapleton said: “I would expect a small supply of assets to be delivered to the market before Christmas and the supply should gather momentum into 2011/2012, but on a manageable basis so as to avoid over supply. The sooner this process starts the better because in itself it will create a degree of confidence."