A NATIONAL survey has found that retail rents have been reducing as the number of empty shops starts to rise in the South East.
The quarter four (Q4) 2017 RICS UK Commercial Property Market Survey said that demand fell for the third consecutive quarter with -3% more respondents reporting a fall in demand from prospective tenants.
Against this backdrop, rents are also expected to decline for retail space in the near term, and this picture is predicted to continue over the next 12 months.
Although rent projections for prime retail space were downgraded in Q4, the weakness in retail rental values is mostly in secondary retail locations which have slipped further into negative territory.
Simon Rubinsohn, RICS chief economist, said: “The weakish tone to the Q4 survey results for the retail sector sits comfortably alongside the generally disappointing trading statements emanating from the high street in the run-up to Christmas.
“The counterpart to this is the ongoing strength in demand for well-located warehouses to support the inexorable rise of the online consumer.”
