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Office sector outperforms; retail in the doldrums

Occupier markets are seeing diverging fortunes, with occupier demand for office and industrial space extremely strong, but retailers battling a number of headwinds. This is likely to set the tone for rental performance in 2019, although slower economic growth and a rise in new supply will dampen office rental growth. Investment activity is likely to stay close to current levels, with the industrial sector gaining in market share and driving yields in the sector lower still.

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