Vast Increase of Short-term Outlet Vacancy Rates in UK

Posted on 15 April, 2016 by Chris Grigorovsky

It has been reported that there was an 85% increase of vacant short-term outlets since Q4 2015.

Vacant Retail Unit

The Local Data Company (LDC) found that units which have been vacant for less than a year had increased to 2,109 in Q1 2016, a substantial increase from Q4 2015’s amount of 1,141.

Overall, March’s shop vacancy level was at 12.5%, which is the lowest since January 2010, while shopping centre vacancy stood at 13.2%, down by 1.5% compared to the same point in 2015.

Meanwhile, retail park vacancies saw an improvement across the UK, reaching 6%.

For the third month in a row town centre vacancy rates were unchanged at 10.9%, however the local rate in Scotland saw a 0.5% increase compared to the same point in 2015.

Commenting on the findings, Director of the LDC, Matthew Hopkinson, said: “There are two key areas of note in this data. The first, is that short term vacant units are remaining vacant for longer.

“This begs the question of whether optimal occupation levels have been achieved in many locations or not. Should the trend continue, the increased polarisation between locations where shops close and open versus those where shops just close, would grow.”

He goes on to say that the polarisation is seen clearly at a regional level, noting that the number of units vacant in Wales, the West, North East and West Midlands for over three years has doubled more than London and the South West.

Mr Hopkinson concluded: “Consumer confidence remains fragile and April has seen the arrival of the National Living Wage, which will increase costs significantly for retailers.

“Only time will tell as to who will have to reduce their number of shops accordingly, by focusing their investment on the healthier locations whilst the weaker locations continue to weaken and lose any shopping attractions that they might currently have.”




Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.


Recent Posts

The latest property data has identified Newquay as the fastest property seller’s market in the UK

Investing in your garden can increase your property’s value

French Riviera temping high-end homebuyers

How can the ownership rights of my commercial property impact a business sale?

Should I incorporate virtual property viewings permanently?

Investment expected to increase across Asia-Pacific in 2021

UK property industry slows as the conclusion of tax break looms

BNP Paribas cautioned investors on Friday as debt-trading bonanza that increased its earnings this past year

Over 300,000 property purchases fell through in 2020 – we show the most frequent motives and the best way to get your house sale back on track

House Prices in the Capital Surpass £500,000

Optimism from the Bank of England’s chief economist

The most expensive commercial properties.

Businesses operating from shared premises will miss out on grants

BA cuts 12,000 jobs, unions hit back

Media Streaming Service See Record Subscriptions

Covid-19 Causes Millions To Claim UK Furlough Scheme