Summer promises sunnier outlook

With international travel remaining under a cloud of uncertainty the ‘staycation’ will be the main focus for those looking to get away this year. Mintel estimates that £7.1bn will be spent on UK holidays between July and September this year.

We are already seeing a flurry of new businesses that will open as the pandemic, and further re-basing of national rents, has reduced the barriers to entry. There will now be stores on the high street that will be affordable to new operators. With high street staples such as New Look, Monsoon, Moss Bros and more all undergoing CVAs there’s a glut of space set to be filled. The reality is there’s now a once-in-a-generation opportunity to access some of the best retail space at very competitive rates. If the Government could do something about the inequality of business rates then the picture would be complete for new entrants.

Regardless of how many new occupiers capitalise on the advantageous conditions, there is still a vast oversupply of retail and leisure space nationally. With Arcadia and Debenhams among the high street casualties, along with recent news of John Lewis planning store closures there will be a huge amount of vacant space to deal with. In many instances these are complicated assets and many retail buildings have been designed for that specific use, or have adapted to moth ball uppers, when the previously valuable ground floor space was the focus. On a positive note, many are in prominent positions and are attractive buildings, but these often require an innovative approach to repurposing, combined with a keen eye for cost management.

Private, affordable and social housing combined with co-living, student and retirement accommodation will play a major part in the re-purposing of our retail landscape.

It’s estimated that the UK is facing an undersupply of more than a million homes. Addressing this shortfall should prioritise urban regeneration projects and the planning system needs to encourage this. Edge of town housing developments may be the easy option to deliver numbers, but this seems crazy when large chunks of once vibrant towns remain empty.

Private, affordable and social housing combined with co-living, student and retirement accommodation will play a major part in the re-purposing of our retail landscape. Re-populating our town centres will start a chain reaction of other uses; community, leisure, flexible working, office, hotel and retail will come together to create a multipurpose centre once again.

Although we still have a rocky time ahead of us, the summer is certainly looking more hopeful. As people are steadily allowed to spend more time outside of the home, the high street is set to be one of the big benefactors, but it will not return to how it was. While the government purse is focused on support we must also look to how we fund and incentivise regeneration at a local and national level.

Lloyd Entwistle
Director - Retail Repurposing & Development
lloyd.entwistle@colliers.com | +44 (0)20 7344 6812