The slowing economy led to a further fall in occupier demand in Q4, with retail seeing the largest contraction. So far, the fall in rental expectations has been relatively modest and surveyors expect further growth in industrial rents. But the surge in interest rates last year has had a chilling effect on capital value expectations. However, the size of the capital value declines to date means surveyors may already be behind the curve, and with market interest rates now falling we expect a smaller drop in values in 2023.
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