Patchy recovery in retail
Recent figures from the retail sector suggest that there may be some levelling out of the downturn in rents and activity, but the latest report from the BCSC shows that considerable pressure remains in some areas. The BCSC says that its research, undertaken by DTZ, shows that one in five of the UK’s shopping centres is at risk of defaulting on its loans. The centres most at risk are secondary or tertiary retail centres – the report highlights the growing difference between the performance of these sites and prime retail properties.
Meanwhile, retail sector data from Cushman & Wakefield shows that while rents have continued to fall, the rate of decline has started to slow. Property Week reports that activity levels have been boosted by landlords offering incentives to achieve lettings, although there may also have been a temporary improvement thanks to short-term lets over the Christmas period. London retail property rental levels have benefited from a shortage of good-quality space, particularly in the West End, although less tourist-driven areas have seen availability increase.
