Demand For Retail Property Hits Lowest Level Since 2009
According to the RICS UK Commercial Property Market survey, 43% of respondents saw a drop in demand throughout the first quarter. It is the lowest level of demand marked since the height of the financial crisis in 2009.
Furthermore the number of respondents noting an increase in availability in the retail sector which has rose by 43% in the same period.
On a yearly basis, expectations of respondents over prime retail rents to rise jumped 24%, rising even further for secondary retail rents across all parts of the UK.
“It has been hard to escape the grim news from the high street in recent months with a whole host of well-known names either closing down or looking to scale back their footprint,” RICS chief economist Simon Rubinsohn said.
The latest survey results of chartered surveyors suggest that this challenging environment is unlikely to let up anytime soon. Indeed, the feedback regarding secondary retail locations points to further falls in rents over the coming year and landlords under pressure to increase sweeteners to keep tenants in place.
“Indeed, the likelihood is that the more desirable locations will get even more expensive as the change in our shopping habits continues to advance.”