Tough climate fails to quash demand
Investment in the retail property sector has risen, despite weak demand for shop space from retailers, according to an RICS Commercial Property Survey.

Investors are entering the market with hopes that the sector has passed its lowest point, even though retailers' appetite for shop space still remains poor.

Those investing in the retail property division are hoping that healthier high street trading will boost rents and investor income.

Surveyors no longer expect a fall in retail rents. Available shops on the market rose for the 15th consecutive quarter, which will limit rent rises in the near term.

RICS economist Oliver Gilmartin said: 'Buyers of shops are confident that interest rate rises will not dampen consumer spending, with some signs that the fall in retailer demand for shops has bottomed out.

'Consumer confidence remains high and goods prices on the high street are on the rise again, which will boost profit margins.'

Topics