The shift towards remote and hybrid working has reshaped many aspects of daily life, including shopping and spending habits. With fewer people commuting into city centres five days a week, local and suburban retail venues have emerged as unexpected winners.

What does this trend mean for commercial property investors and business owners?

The Rise of the Local High Street

As remote workers spend more time and money closer to home, the convenience of shopping locally during the workday, rather than making weekend trips to town centres, has benefited businesses such as coffee shops, convenience stores, and independent shops. This has led to many retailers, traditionally found in retail parks and trading estates, looking towards the high street for their expansion plans.

Key Factors Driving Growth

More Flexible Shopping Habits

Without the constraints of a 9-to-5 office routine, remote workers have more flexibility to visit local shops throughout the day. This has resulted in a steady flow of customers rather than peak-hour rushes, helping retailers manage resources more effectively.

 Increased Demand for Convenience and Experiences

Convenience is king. More consumers seek shops, cafes and services within walking distance as they look for ways to socialise, exercise, or work without venturing into the city.

The Rise of the “15-Minute City” Concept

Urban planners are increasingly adopting the “15-minute city” model, where residents can access work, leisure, and essential services within a short walk or cycle from their homes. This has further strengthened the appeal of local retail hubs, particularly in well-connected suburbs.

Opportunities for Commercial Property Investors

The growth in local retail presents several opportunities for commercial property owners and investors:

Increased Demand for Retail Spaces

Businesses looking to capitalise on local consumer spending are likely to seek retail units in suburban areas. High streets previously overshadowed by larger shopping centres are experiencing renewed interest from retailers hoping to meet this demand. Esquires Coffee has announced plans to expand its UK presence from 70 to 150 stores over the next three years, focusing on suburban locations. The company has noted that remote workers contribute to higher revenues and longer customer dwell times, making suburban expansion a viable strategy.

Repurposing Commercial Spaces

Empty office spaces in suburban locations are being transformed into retail, leisure, or mixed-use developments to meet evolving demands. Since 2019, more than 1,000 independent health clubs have opened across the UK.

Focus on Community-Oriented Retail

Retailers that cater to local communities with tailored services and products are well-positioned to thrive.

Challenges and Considerations

While suburban retail is benefiting from these shifts, challenges remain:

• E-commerce Competition: Online shopping continues to be a dominant force, requiring physical stores to offer unique, in-person experiences to attract and retain customers.
• Economic Pressures: Rising rents, inflation, and fluctuating consumer confidence could impact retail profitability.
• Retail Closures: Despite local growth, broader retail challenges persist. In the first half of 2024, there was a net increase of nearly 2,300 empty retail units across Great Britain, with significant closures among chemists, pubs, and banks.

The Future of Local Retail

As remote and hybrid work models remain popular, the outlook for suburban retail appears positive. Businesses that adapt to changing consumer habits, offering convenience, community, and quality service, are best placed to succeed.

For commercial property stakeholders, now may be the time to explore opportunities in thriving local retail hubs. While the broader retail environment continues to face challenges, those who respond to evolving consumer behaviour are already finding new avenues for growth.

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