Empty space within UK retail warehousing has increased to 10.0% leading retail property research consultancy Trevor Wood Associates reveals today. In an update to ‘The Definitive Guide to Retail & Leisure Parks’ published in March, Trevor Wood Associates finds the vacancy rate has risen still further from 9.9% at the end of 2012, which was the fastest rise since 2008. The overall figure of 10.0% however, hides a more positive picture for certain regions whose vacancy rates have fallen in the last six months.
Trevor Wood comments, “The annual guide explored the impact of retail failures including Comet, JJB Sports and Peacocks and saw the vacancy rate for UK retail warehousing rise significantly to 9.9% by the end of 2012. Since this review was published however, there have been mixed and contrasting fortunes for retail warehousing, both when grouped by planning consent and by region.”
Much of the space vacated by Dreams, HMV, Staples and others in the first half of this year was Open Non Food consented which caused a temporary spike in the availability of this type of unit, despite the significant take up by other retailers. Similarly, regional rates have varied with East Anglia falling for the fourth half year in a row while the North and Northern Ireland both saw rates falling after a significant increase at the end of 2012. This is mainly due to the time lag often involved with units following administration, but also due to the smaller universes involved.
The fastest growing retailers acquiring space and filling the voids left behind include B & M, Home Bargains, Pets at Home, Dunelm, Oak Furnitureland and Marks & Spencer.
Trevor Wood continues, “Our analyses of the former Comet, Focus, JJB Sports and MFI units shows many units under offer. Since the middle of this year, take up of other retail warehousing space has continued with little additional new developments so we expect the overall rate to fall back below 10.0% by the end of 2013.”