Retail and hospitality sectors to bear the brunt of Iran War

The effects of the Iran war will feed through to property occupiers through two main channels: higher energy costs and lower household disposable income growth. The impact on sectors will vary based on their sensitivity to those factors, and the ability of occupiers to pass on higher costs to their customers. Overall, we expect the retail, leisure and hotel sectors to bear the brunt, whereas office occupiers will be relatively insulated.