Vacancies at retail parks have fallen for the second year running, according to retail market analysts Trevor Wood Associates in their report ‘The Definitive Guide to Retail and Leisure Parks 2011’. Available commercial property fell to 9.2%, 20% down on last year’s figures, as traditional high street names began looking out of town for commercial property left vacant by a changing market, typified by the demise of the likes of Focus DIY and Land of Leather, and the downsizing of JJB Sports among others.
The 9.2% figure is the lowest recorded since 2007 and contrasts to the average 15% reportedly found on the high street by retail researchers, Local Data Company.
To address the disparity, the Trevor Wood report raises the prospect of ‘hybrid developments’ of commercial property, where retail parks are constructed on the edge of town, next to high street shops. Other, shorter-term, suggestions include ‘ease of access, free parking and the right type of stores’, while cautioning that ‘a lot of councils are imposing punitive car parking charges’.
Discount chain B&M Retail Ltd is the fastest growing among the top thirty retail tenants, increasing floor space by 33%. Argos, Carpetright, Halfords, Currys and Pets at Home are all present at over 200 retail and leisure parks. Over 950 different tenants have stores across these sites. 350 occupy one premises, 165 are found in ten or more and the majority are in less than five.
The lack of new commercial property in retail centres is highlighted, alongside a new trend of supermarkets acquiring lower-quality buildings, often on the market for some time, and turning them into ‘destinations in their own right’.
Commercial property vacancies are even lower in ‘good-quality shopping centres that are dominant in the region’, according to Francis Salway. The Land Securities Chief Executive believes levels are approaching 4%, regarded as ‘normal levels’.
In total, the retail warehouse market grew to 173.8m sq ft in 2010, up from 172.5m sq ft in 2009.
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