Expanding retailers have had to rely on a ‘second-hand’ supply of units on retail and leisure parks across the UK because of the low levels of new development, according to research by Trevor Wood Associates in “The Definitive Guide to Retail & Leisure Parks 2016”.
The latest edition of the annual state of the market report revealed that, in the Wales, just 5.3 per cent of retail warehousing space was vacant at the end of 2015. The figure is the result of an ongoing downward trend every six months since the second half of 2013, and is a long way from the heights of 12.8 per cent seen in 2011. The most recent level puts the area in eighth position out of 11 UK regions.
The national and regional research findings were unveiled recently to local property experts at a presentation in Cardiff, hosted by Fletcher Morgan. Trevor Wood, senior partner of Trevor Wood Associates, said: “We studied over 1,500 retail and leisure parks and major retail warehouse developments across the UK, with detailed historic information for every one of the 15,600 retail warehouse units in the country. In Wales, we looked at every site including 70 retail parks.”
Nationally, much of the vacant space became available due to disposals, relocations and downsizing by established companies such as B & Q, Homebase and PC World. Also administrations and Company Voluntary Arrangements (CVAs) with financially struggling tenants freed up units allowing others to expand, although the failure rate reduced during 2015 and the first two months of 2016, lessening this source of available space.
Each year, national rankings compiled by Trevor Wood Associates are treated as league tables for the sector and studied closely by the property industry. They highlight the relative size of schemes allowing easy comparisons to be made.
Parc Tawe Retail Park in Swansea is ranked 11th in the top Retail & Leisure Parks list. Nearby, Morfa Shopping Park, also in Swansea, achieved a similar 11th position in the top Shopping Parks list.
In the national top Retail Parks list, Parc Trostre Retail Park in Llanelli is 19th; and Newport Road in Cardiff is 20th in the top Retail Warehouse Clusters list.
Despite some reduction in space, the report highlighted the strong position of DIY warehouse B&Q. Not only is it the largest tenant on retail parks in Wales, but also it remains the undoubted leader nationally, retaining its top position for the 10th consecutive year.
Trevor Wood added: “Vacancy rates in Wales are lower than previous years. However, the number of Retail & Leisure Parks in the various top rankings show the wide choice and top quality attractions available.”