• UK economic growth slowed to 1.5% in H2 – Retail sales volumes grew by 0.9% and unemployment rate is holding at 4.3%.
  • UK high street rents for ten cities grew by 2.6% over the past 12 months and the busiest shopping destinations continued to see rental growth.
  • Overall, high street transactions have decreased by 7.8% in 2017 to £1.13bn. The High Street investment market for 2017 was characterised by lot size.
  • Central London demand and supply remain finely balanced as rent remain resilient in key streets.
  • Central London investment volumes rebounded in Q4, but restricted to £1.5bn in 2017 due to very few large transactions.
  • The amount of new shopping centre space opened was c. 187m sq ft in 2017, in part largely due to the contribution of three main schemes.
  • Shopping centre transaction volumes were 30% down in 2017 on 2016 and reached 2.13bn. Activity for ‘Best Secondary’ assets rose.
  • Retail Park have seen a slowdown in construction activity, prime rents for all Retail Warehouse Parks have increased by 0.5% annually over the past three years.
  • Grocers are now selectively starting to take up space again for smaller store formats.
  • Casual dining operators face challenging times due to consumer’s decrease of disposable income, a decrease in consumer confidence and cost pressures and cost pressures.
  • The Logistics sector is evolving further with online retail and third party logistics gaining momentum.
  • The Christmas results for retailers showed a mixed performance and if inflation at 2.7% (CPI) in December 2017 is taken into account, the story for many occupiers is not as strong as it might have been hoped.