Is the Italian retail market as safe an investment as some think?

Anecdotal evidence suggests that many investors believe that the Italian retail market offers a better risk profile than offices or industrial. We are not convinced. Indeed, with consumer spending likely to contract in 2012 and 2013, the risks to retail rental growth, and therefore income streams, lie firmly on the downside. Indeed, if anything, we think that retail assets may be more exposed to the deteriorating economic outlook than Italian office or industrial property.