1. UK Commercial Property Update
Q3 2018

2. Headline rent expectations are consistent with a flat outlook for rental values

3. That said the headline series is heavily weighed down by the retail sector

4. Demand for retail space has declined significantly

5. Industrial rents are expected to continue rising firmly

6. The outlook for offices is modest in comparison

7. The retail sector remains under pressure across all regions

8. And the picture is not expected to materially change in the medium term

9. Flat investor demand suggests capital value growth will moderate

10. But this is exacerbated by falling interest in the retail sector

11. Where landlords are expected to cut their exposure

12. Unsurprising given the possibility of more retailers looking to insert CVA clauses

13. Contributors remain upbeat regarding the industrial sector

14. And office investment enquiries point to a stable trend in capital values

15. The picture for London offices is broadly similar

16. Sentiment across the capital is a little more downbeat across market segments

17. With many viewing the London market as expensive

18. And currently in the downturn phase of the cycle

19. The share of respondents noting some relocation of business has risen over the quarter

20. With the largest proportion in Northern Ireland and London