Leaner times loom for commercial property

Since the economy emerged from recession in the 1990s, retailers have been scrambling to expand their floor space. But now that evidence is mounting that consumers are reining in their spending, could property stocks face a downturn?

"Shop 'til you drop" has been the mantra since the economy emerged from recession in the 1990s. So retailers have been scrambling to open new outlets and expand the square footage of existing stores, while supermarkets are busy with plans for more of the massive out-of-town developments that proliferated in the 1980s. The latter process halted a decade ago, when developers were told to focus on town centres instead, but Kate Barker's recently published Treasury-backed report into the matter suggests the current government is reversing that position.

Commercial property: retail rental values under attack

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