As retailers reduce their footprint, landlords are left with irrecoverable business rates and service charges.
Many units remain empty with diminishing tenant interest with current “leasing” models no longer sustainable.
25% estimated oversupply of retail space in the UK with vacancy rates set to increase over the 13.7% mark.
Even pre-pandemic we knew the challenges; the re-purposing of retail assets was one of the strongest trends to come out of the PWC “Emerging Trends in Real Estate 2020” report. COVID-19 has accelerated this trend. Vision and foresight is required to proactively redefine retail as an integrated space to live, work, shop and play.
There is a once-in-a-lifetime opportunity to reshape and re-purpose retail through incorporating experiential health & wellness destinations and smart workplaces as part of a dynamic mix of integrated uses, the urban mixed use eco-system. Many of these assets will have ample parking, supporting other uses including regional office hubs as commuting habits change.
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