Vacancy rates in the West Midlands out of town retail sector have fallen to their lowest point since the end of 2006, dropping to 8.1% in 2014, according to The Definitive Guide to Retail & Leisure Parks 2015, released today.
The figure is down from a mid-2009 peak of 11.5% and is the lowest since a rate of 7.7% was recorded at the end of 2006.
The figures were revealed at the West Midlands regional launch of the report by Trevor Wood Associates at an event hosted by Bilfinger GVA in their Birmingham offices.
National results showed that overall vacancy rates for the retail warehousing market were at their lowest since 2004, down to 7.1% at the end of 2014 from a peak of 10% in mid-2013.
A major factor in the turnaround has been demand from comparison goods retailers, which at the end of 2014, occupied 54.6% of retail warehouse space (excluding DIY), up from 53.2% the previous year. Almost 2.5 million sq ft was taken during the year by just ten retailers: B & M, Marks & Spencer, Home Bargains, The Range, TK Maxx, Poundland, Smyths Toys, Sports Direct, Dunelm and Pets at Home.
The report highlights the growth in floorspace of value retailer B & M as discount retailers increase their footprints across the UK. The trend follows the rise in discount and budget retailers identified in Going Shopping 2015 – The Definitive Guide to Shopping Centres, published by Trevor Wood Associates last year.
The out of town retail report shows that B & M has risen to sixth place in the Top 10 Retail Park Tenants rankings, up from 11th position in 2013. This follows a 30% increase in square footage – up from 2.28 million sq ft to 2.97 million sq ft in 2014.
West Midlands also featured in the league tables that make up the comprehensive report into the retail warehousing market. The region is one of only two where B&Q is not the top regional tenant with Matalan, which ranks in fourth place nationally, taking the top regional tenant spot.
In terms of the leading investment manager for retail parks for the West Midlands it is Standard Life Investments, ranked second nationally. Savills, ranked third nationally, is the top regional letting agent for the retail warehousing market in the region. The top managing agent was JLL, ranked second nationally.
As for schemes, Birmingham’s Star City ranks ninth largest in the top ten leisure schemes whilst The Fort Shopping Park, also in Birmingham, retains its seventh place for yet another year in the top 10 ranking for retail park rents.
In total 144 schemes within the West Midlands region are featured in the report which comprises analysis of 1,550 UK schemes in total as well as 79 schemes “in the pipeline”.
Trevor Wood, senior partner of Trevor Wood Associates, said: “The fall in vacancy rates is hugely encouraging for the region given the peak we saw in 2009. The West Midlands has continued to prove a strong and stable market and prospects look positive for the future.”
The Definitive Guide to Retail & Leisure Parks 2015, at 364 pages in length, is the biggest to date and includes two new major analyses. These include analysis of retailers who went into administration or restructured and analysis of the fastest growing and decreasing tenants.
