Retail Market Overview
Contractors output is forecast to fall by around 6% over 2017- 2020 and to then increase by 2-3% p.a. 2023. Underpinning the ongoing downturn has been the much-publicised decline of the ‘High Street’, due to the impact of the growth in ‘online’ shopping and high rents. Less widely reported has been that the established grocery chains are re-purposing parts of larger stores, e.g. through selling concessions to other operators as J Sainsbury has done with Argos.

Over the longer term, any growth in the sector will be largely driven by the discount multiples operators. Aldi, Lidl, B & M and Home Bargains have ambitious store opening programmes, although their main strategies are to convert and re-brand empty premises on retail parks.

Commercial Offices Overview
Office construction output is forecast to grow by 1-5% a year to 2023.

Uncertainty surrounding ‘Brexit’ has impacted on the funding of high-rise, luxury apartment schemes across London as many institutional investors have been reluctant to commit funds to projects that cannot guarantee immediate returns on rental income.

However, over the medium-term urban areas we expect there to be increased demand in; urban areas where large former industrial sites are being converted to commercial use; as part of high-rise mixed-use developments in London and other cities and where there is still a dearth of Grade A office space.

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