Update: June 2019 – Industrials

UK GDP growth in Q1 proved to be temporary, with early readings on how the economy has performed in the second quarter looking disappointing. Wage growth has held up, which is expected to feed through to higher inflation and Bank Rate rises next year. The UK commercial property market slowdown continues to be driven by the retail sector. Investor demand in regional office markets has held up well, and the outlook for rental growth in regional cities is solid. Industrials continue to be the top performing traditional sector, with rental value growth expected to be greater than other traditional sectors for the next five years.