Retail therapy is established, if not medically then at least statistically, as one of Britain’s favourite pastimes. A prescription of retail development, administered to towns and cities, will have an equally remedial effect, promoting recovery and stimulating growth in the local economy.
Stratford in East London is a prime example. Formerly a struggling London borough, with empty, forlorn commercial property, the 2012 Olympics host is now off the sickbed, undergoing rapid regeneration.
Retail development is at the heart of this metropolitan metamorphosis – 1.5m sq ft of commercial property will be constructed, helping to create an estimated 3,000 jobs and attract £70m of additional economic growth.
In 2008, £6bn of investment was ploughed into retail development, providing social, economic and environmental opportunities for the 7.6m people employed in the sector across the UK.
These impressive figures show the retail sector’s importance to the UK’s stuttering economy. Convergence of elements, among them government, local authorities and commercial property developers, will augment and accelerate its recovery.
Banks have become over-exposed to the commercial property market, resulting in an aversion to risk. To boost confidence, developers can work with retailers by pre-letting developments, demonstrating demand and offering security of income to jittery investors.
The government-driven localism agenda is another critical factor. By devolving more power to the local level, the government must also acknowledge that it is devolving more responsibility to individual authorities to encourage growth within existing commercial property, and acknowledge the crucial part played by the retail sector in this.
Lord Henley, sustainable development minister, recently announced “long term growth is only possible if we protect and enhance the environmental resources that underpin it”.
The Carbon Reduction Commitment, Energy Efficiency Scheme, the EU Energy Performance of Buildings Directive; all are factored into commercial property developments today.
The retail sector ticks the growth and environmental boxes and displays a clean bill of health. It’s time it was discharged to aid the UK’s regeneration.
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