RETAIL property is the latest casualty in the fortunes of the commercial property sector, according to a survey by the Royal Institution of Chartered Surveyors.

High levels of consumer spending meant the retail sector held up impressively last year, but retail occupier activity took an abrupt downturn in the first part of 2003, reflecting disappointing consumer spending.

New occupier inquiries flattened out and floor space availability rose sharply at the fastest rate for three and a half years.

Weaker demand has led landlords to offer greater inducements to persuade tenants to take space.

The national picture is reflected in a drop in retail demand and a fall in retail space expectations across the North-East and Yorkshire.

Joe Hyam, director of DTZ, Debenham Tie Leung, in Newcastle, said: "There is still unsatisfied requirement in key areas of the market, which is a positive sign for the retail sector in the region.

"We saw Dalton Park open in Seaham, County Durham, last week with 28,000sq ft available, and Eldon Square, Northumberland Street and the Metro Centre continue to thrive."

Barry Crux, of Barry Crux and Co in York, said: "The retail market in York and North Yorkshire has been static since Christmas.

However, there are a few indicators suggesting that retailers are not enjoying sales levels as high as last year, with some showing notable declines.

There has been modest take-up of secondary retail units, but prime ones are still in good demand."