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 South West, just 4.2 per cent of retail warehousing space was vacant at the end of 2015. The figure is the same as six months earlier, implying a plateau following a constant downward trend every six months since the first half of 2013. This is a long way from the heights of 10.4 per cent seen in 2008. The most recent level puts the area in tenth position out of 11 UK regions.
The national and regional research findings were unveiled recently to local property experts at a presentation in Bristol, hosted by Macarthur Wilson. 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 the South West, we looked at every site including 86 retail parks. Since last year’s review, a small number of new sites have joined the future development pipeline such as Truro City Shopping Park, which could ease the demand for available space.”
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. The South West is well represented throughout the lists.
Castlepoint in Charminster, Bournemouth did well, topping the Shopping Parks list at number one, and ranked second in the UK in the Retail Parks list. Cribbs Causeway in Bristol is in fourth position in the Retail Warehouse Clusters list and Greenbridge Retail Park in Swindon is seventh in the Retail & Leisure Parks 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 the South West, but also it remains the undoubted leader nationally, retaining its top position for the 10th consecutive year.
Trevor Wood added: “Vacancy rates in the South West are lower than previous years. The number of Retail & Leisure Parks in the various top 10 rankings show the wide choice and top quality attractions available in the region.”
