Retail Property Insights

A guide to renting a shop in Leeds

7th November 2022

Looking for shops to rent in Leeds? Here is what you need to know. With the pandemic intensifying the problems that many retailers were already dealing with, businesses have re-evaluated what works for them and their customers. For many the soaring rents of London aren’t sustainable, which gives smaller cities such as Leeds the opportunity to house growing businesses. Leeds has developed to become one of the country’s most prominent regional capitals in recent years. Once at the core of the UK’s industrial machine in the 19th century, Leeds has risen again as a vital industrial base. Leeds is the third-largest city in the UK with a population of over three million people and booming shopping districts. Leeds has a wide choice of retail shops to rent, from major centres like Trinity Leeds and Kirkgate Market to smaller independent quarters like The Electric Pass. Attractions The Royal Armouries is arguably the best attraction in Leeds. With five floors crammed full of relics, trinkets and treasures from the National Collection of Arms and Armour, it brings the history of warfare and combat to life. The site is also free to enter, making it the ideal rainy-day activity. For those wanting to see more contemporary culture, the […]

Scottish shopping centres could be ‘winners’ in next year’s rates revaluations, says EYCO

4th November 2022

Craig Wilson, partner at Edinburgh-based EYCO Chartered Surveyors, confirmed he has been working with assessors on a number of Scottish shopping centres, trying to find their 2023 rateable values, which will determine rates bills next year. “So far, the results have been very encouraging. Welcome news at a time when other occupational costs are increasing,” he said. “To date, I have been confident enough to report an estimated £18.5m cumulative rateable value reduction across 6 centres, with a number of other centres still under discussion. These results typically exclude the still to be resolved issue of ex-Debenhams and/or BHS stores.” Wilson explained that the £18.5m represents a 47% cumulative reduction, and added: “I have had discussions on 12 shopping centres in Scotland. The adjustments we can expect to see will not be uniform, but I would anticipate that those enclosed centres of highest value will see the largest percentage decline in rateable value. Adjustments of -40% to -50% would not be unusual, perhaps more in some locations. “The second tier, lower value enclosed centres already experienced something of a correction at the last rates revaluation in 2017 and, as they are currently at a lower base and typically have smaller...

Watch: Neelofar Khan discusses what can be done to support independent businesses

4th November 2022

Since the pandemic retailers have continued to face challenges, from inflation to energy costs. We sat down with Neelofar Khan at the recent Completely Retail Marketplace 2022 event to discuss how Zabardast has approached these difficulties and what can be done to support independent businesses. “Landlords and agents, in pre-covid days, were just signing up and not really participating. What I would love as a small independent business if for them to be an active stakeholder. By that I mean, whether it’s a turnover rent deal or a CapEx deal or they advise us and sit on our board. They need to come to the table as a partner rather than landlord and tentant.” “You need to have some collaboration, you need to have skin in the game. Not signing up the unit and bye bye, it’s not like that anymore it just can’t survive.” Speaking on how the cost of living crisis has effected her businesses, Khan explained: “It’s very difficult at the moment and that’s true for everybody because theres a lot of unknowns. We cannot compromise on the quality of our products, so what we are looking at is buttoning down the cost as much as we can and […]

Watch: The challenges facing the leisure sector

3rd November 2022

The energy crisis was a hot topic of conversation at the recent Completely Retail Marketplace 2022. We sat down with James Hamilton, Rona Kelly and Rachel Belam to discuss this and how the leisure market has recovered after the pandemic and how retailers are approaching new challenges. Commenting on how the energy crisis is affecting expansion plans, Rachel Belam, head of food, beverage and leisure leasing at Unibail-Rodamco-Westfield explained that the recent restaurant openings at Westfield locations in London and Stratford allowed them to avoid the struggles being faced by other retailers. “I’m not saying we won’t feel that in 2023 but we’ve been really busy, we’ve just opened a host of new restaurants with more to come this year. We’ve just opened Salt Yard, we’ve got Flat Iron opening and Sticks and Sushi just before Christmas.” Conversely, James Hamilton, property director at Costa, said: “Definitely! It’s definitely made the returns sharper, we use lots of data companies to help us accurately forecast because we want to make informed decisions and this gives us confidence to keep investing, so that certainty at the cost base, its not going to make it easy.” Rona Kelly, head of estates at The Gym Group […]

Data shows £3.7 billion of space goes unused

2nd November 2022

Research by Real Business Rescue showing the most cost-effective places to rent retail space has revealed that UK vacancies remain above pre-Covid levels. According to the data, the UK currently has over 150 million square feet of unused retail space. At an average annual price of £24.48 per square foot, this leaves £3.7b of spare space. Perhaps unsurprisingly to many, London remains the most expensive place to rent at £49.64 (all prices are per sq ft. per year), with Kensington and Chelsea the most expensive borough at £86.15, higher than the national average by 252%. Interestingly, Blackpool is the cheapest place in the UK to rent retail space at £12.45, despite being second in its footfall recovery score. That is, how fast footfall in the area has recovered to pre-pandemic levels. Blackpool saw a record boom in visitors following the pandemic in 2021. Plymouth had the highest footfall recovery score, with an average rent price of £20.08 per sq ft. per year. London had the worst footfall recovery score, alongside being the most expensive place to rent. The report suggests that businesses in London may not be getting complete value for the premium prices they pay on rent. Shaun Barton, […]

Retailers still suffering since Covid, data shows

2nd November 2022

Data published by the Office for National Statistics (ONS) on Monday shows that the retail industry is still falling short of pre-Covid levels. “High contact” industries, such as shops and restaurants, have recovered at a slower rate than previously expected. It was previously estimated that these “high contact” industries would recover to pre-pandemic levels by the second quarter (April to June) 2022, however their output is still below the levels seen in the final quarter of 2019. The Coronavirus lockdowns seeing many businesses forced to close and restrictions when they could reopen had a huge impact on the sector. Household spending on “social consumption”, that is, spending on recreation and culture, restaurants and hotels, was also reduced, although the effect this has had was closer to what was expected. Other research by the ONS showed that while personal wellbeing rose in the year to March 2022, satisfaction levels were still lower than 2019 levels, which may contribute to consumer spending habits. The War in Ukraine and uncertainty surrounding the UK’s exit from the EU are other factors which have also had an effect on the economy within the last three years, suggesting that Coronavirus may not be the only factor...

Vacancy rate falls but concerns over consumer confidence remain

28th October 2022

Despite predictions that falling consumer confidence will put retail recovery to the test, the number of empty stores has continued to decline. However, the current vacancy rate is still higher than pre-pandemic levels. The British Retail Consortium (BRC) and Local Data Company (LDC) reported that the overall vacancy rate across Britain fell to 13.9% in Q3 – the fourth consecutive quarter in which the number of empty shops has reduced. From Q2 to Q3, high street vacancies reduced to 13.9% from 14% while shopping centre vacancies dropped to 18.8% from 18.9%. Geographically, the lowest vacancy rates were found in London, the South East and East of England. The highest rates were in the North East, Wales and the West Midlands. Lucy Stainton, Commercial Director at LDC, said “Our latest analysis of the physical retail and leisure market across GB as a whole shows a sustained level of recovery at a time when further economic headwinds have been well-documented. With a decrease in store closures compared to the same time last year, in parallel with an increase in openings, vacancy rates have continued to decline as we look to the end of 2022. According to Helen Dickinson, chief executive of the BRC, “The costs […]

Battersea Power Station: Power Play

28th October 2022

This week I popped over to Battersea Power Station. It was a glorious, sunny, autumnal day – perfect conditions to have a long awaited mooch and immerse myself in the capital’s newest retail and leisure hotspot now the doors are finally open to the public. It filled this South London born girl’s heart with joy to see the staggering transformation. Growing up, I had only ever known Battersea Power Station to be a derelict and unloved yet iconic building, a throwback to our industrial past. Over the last 20 years I have written about various failed attempts and false starts to regenerate the site, including turning it into an indoor theme park. But this former cathedral of energy (in its heyday it guzzled 240 tonnes of coal per hour) is now a beacon for all things retail, leisure and residential. An astounding and jaw-dropping feat of sensitive reconstruction and restoration of an incredible and vast London landmark. Costing a cool £9bn and opening, ahem, 40 years after it shut down as a power station, it is once again full of life and energy. A beacon of all that is good in the retail and leisure sector, but sadly opening at […]

Clifton suspension bridge and bristol city

A guide to renting a shop in Bristol

26th October 2022

Looking for shops to rent in Bristol? Here is what you need to know. Situated on the River Avon, Bristol is the most populous city in the Southwest of England and the eleventh-most populous urban area in the UK. The city has a thriving economy, built primarily on the creative media, technology, electronics and aerospace industries. On average, employment rates and salaries are higher than elsewhere in the country, making it an excellent destination to start and grow a business. Bristol brands itself as an ‘independent city,’ cultivating a unique community spirit through the Bristol Pound and supporting and promoting its local retailers. Attractions When it comes to art and culture, Bristol has plenty to offer. Known for its thriving art scene, the city is home to art galleries such as Arnolfini Arts Centre and Bristol Museum & Art Gallery. Meanwhile, you only need to wander around to discover Bristol’s most famous artists. Banksy’s original artworks can be found in various locations around the city and dedicated walking tours are available. Film lovers can enjoy independent cinema at Cube, Watershed, and Everyman Theatre, as well as film clubs such as Bristol Bad Film Club to the Sunset Cinema. The buzzing […]

Retail sales fall to below pre-Covid levels

21st October 2022

Retail sales fell to below pre-Covid levels in September, according to ONS data, due to the cost-of-living crisis and store closures for the Queen’s funeral. Sales volumes were down -0.3% in September compared to February 2020, while sales values jumped 11.8%, due to inflation. Month on month sales volumes dipped 1.5% and were down 6.2% compared to September 2021. Lisa Hooker, PWC industry leader for consumer markets, said: “Worryingly, September was the first month post-lockdown when retail sales volumes dipped below pre-pandemic levels, suggesting that consumers’ post-Covid pent-up demand may have fully unwound.” She claims that this does not bode well for retailers over the Christmas period. “There is no question that the momentum is downward as retailers enter the critical Golden Quarter period in the run up to Christmas,” “Political and economic uncertainty, combined with increasing utility bills and the threat of higher mortgage interest rates will put a severe dampener on consumer spending in the coming months. Lower demand, cost inflation and political uncertainty will also be weighing on retailers, who will without doubt be battening down the hatches for the bitter winter ahead.” Grocery store sales volumes fell by 1.8% in September, which leaves them 3.2% below...

Watch: Alex Schlagman discusses The Vacancy Partnership

20th October 2022

On the 27th of September SaveTheHighStreet.org announced the launch of the Vacancy Partnership. At the Completely Retail Marketplace 2022 event, Alex Schlagman, Co-Founder of SavetheHighStreet.org explained the motivation behind the partnership: “The reality is we are going through the most transformational period in the entire history of high streets and town centres, it feels like every week theres a new crisis in the news. A number of industry partners have come together and said how do we turn this on it’s head, how do we look at vacancy as a catalyst for positive change, how do we look at it as an opportunity…how do we encourage and support a new generation of high street entrepreneurs.”

Watch: Ronald Nyakairu from LDC talks retail industry stabilisation

11th October 2022

On the 22nd of September Local Data Company released their latest report on retail and leisure trends over the first half of 2022. Speaking at the Completely Retail Marketplace 2022 event, Ronald Nyakairu, Head of Insight and Analytics at Local Data Company said: “We’ve seen a lot more resilience, we’ve seen a lot more occupiers now taking up space, particularly independents. Last year we saw independants grow and this has continued into the first half of this year.” The recent decline in closures Commenting on the reported decline in shop closures, he said: I think (retailers) have become a lot more resilient and a lot more nimble. This is also the first half year where we haven’t had a pandemic impact, we haven’t had any lockdowns, or any restrictions in terms of trading across the majority of the period.” “If you think of the challenges we’ve seen over the last two and a half years, I think it’s that critical time where they (ocupiers and landlords) need to have those open channels of communication. In a way the pandemic helped draw that line up where they had to work together to get these places back up, no one wants to...