Do solid Q4 spending data signal a brighter retail rent outlook?

The rise in real consumer spending in Q4 last year was the fifth in succession and, at face value, looks favourable for retail occupier demand. It is also encouraging that the adverse effects of recent retailer failures have at least been partly offset by expansionary demand from others. However, we think that consumer spending still faces significant headwinds in the coming quarters and it is hard to see sustained and/or widespread retail rental gains in 2013.