1. UK Commercial Property Update
Q1 2019

2. Headline rent expectations suggest UK rental values will stabilise in the near term

3. Outlook for industrials is still solid however

4. Rental values are expected to remain broadly steady for offices

5. Whilst rents across the retail sector are expected to continue falling

6. Supply of vacant retail space has continued to edge upwards

7. Whilst landlord incentives offered to tenants have risen sharply in this area

8. Retail rents are projected to decline in both prime and secondary locations

9. With rents envisaged to fall across all UK regions

10. The RICS investment enquiries series points to a softer trend in UK capital values

11. But this is mostly driven by downbeat sentiment across the retail sector

12. Outlook for industrials remains solid

13. Expectations for capital values are broadly similar for London and nationally

14. Overseas interest appears to be holding up despite Brexit uncertainty

15. A growing share of respondents see the market as in the downturn phase of the cycle

16. Meanwhile credit conditions appear to have deteriorated slightly (in net balance terms)