With interest rates now set to be higher for longer, we are sticking with our view the UK will enter a recession later this year. That will hit occupier demand across all property sectors, but industrial should weather the downturn relatively well. After all, the sector has historically been less cyclical thanks to shorter building cycles and may also be supported by shifts within consumer spending. Rental growth will therefore slow but, at 3% this year, it will be the only sector to avoid a fall.
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