Sector and city performance to remain uneven

Fiscal and monetary stimulus have kept economic growth solid and will support a continued recovery. While this bodes well for occupier demand, structural factors have weighed heavily on the office and retail sectors. That weakness is set to persist this year. On the other hand, industrial has benefited from structural forces, while apartments, which have been faring poorly, are beginning to show the early shoots of recovery. Nevertheless, even in the apartments sector, where investment totals set a new quarterly record in Q4, there will continue to be a wide range of performance, with cheaper Southern cities faring particularly well and more expensive northern coastal cities less so.