The number of retail premises in the North East of England
attracting attention from potential tenants has lagged behind
availability throughout Q1 2012.

This continued drop in rental expectations following the latest
RICS UK Commercial Market Survey will concern commercial property
owners with a net balance of 5 per cent more respondents reporting
reduced demand, contrasting with 24 per cent reporting increasing
availability of unoccupied retail space to
let.

Additionally, 20 per cent more surveyors forecasted further
declines in rental values throughout Q2 2012, with many other
regions across the UK also reporting a negative outlook on the
sector.

Kevan Carrick, RICS North East spokesperson, said: "The retail
property sector continued to suffer in the early part of the year
with falling demand resulting in the continuing negative outlook
for future rental values and activity.

"With the government's response to the Portas Review having been
announced last week, it remains to be seen what impact this will
have on the high street and the retail sector as a whole.

"Across many parts of the country, it seems that the commercial
property sector in general is continuing to struggle, with a lack
of affordable finance proving a big barrier to growth."

The outcome of the Portas Review is that many towns across the
country have been applying to become Portas Pilots. The government
has been largely receptive to the High Street Review with ministers
accepting the vast majority of recommendations, but they also
intend to provide a raft of additional incentives, funding schemes
and measures to reduce needless bureaucracy in a bid to rejuvenate
the nation's stores.

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