High interest rates have taken longer to percolate through the economy than we expected, but we now think consumer spending will contract over the next six months. That poses a risk to our retail rent forecasts. However, the sector will still benefit from consumers switching away from expensive services to cheaper goods and, after a large correction, rents may have room to grow again, albeit slowly. We are therefore sticking to our above-consensus call for a 0.9% y/y rise in retail rents in 2024.
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