“We all know that retail is going through a massive change and I think we need to position our real estate to help retailers take space and continue to occupy the high street in a way that fits a model for the future,” said Emma Cariaga, head of operations for Canada Water at British Land, at the Future of London event, hosted by BL at the Printworks in Canada Water.
“The conditions need to be right for them and the barriers to entry need to be lower. My sense is that you might find multiple retailers taking the same space, and as a consequence of that, the cost for the retailer is manageable.
“The fit-out needs to be thoughtful and flexible to allow those different occupiers to occupy the same space.”
Flexibility
She described a scenario in which a retailer might take the unit for the morning, a restaurant in the evening and another occupier in the time between.
“The value of physical is there if you could just manage the costs for the retailers and allow them to maintain a presence in a cost-prudent and efficient environment.”
British Land, in partnership with Southwark Council, is going to create a new urban centre for London, Cariaga says, adding that this is the first new town centre in the capital for more than 100 years.
The proposals call for 5m sq ft of development split almost evenly between residential and commercial space. “That is a big difference,” says Cariaga. “Much of London’s regeneration tends to be biased towards one particular use, typically residential.”
In May, British Land submitted the first phase of its masterplan to Southwark Council for planning approval. The phase comprises of 1.8m sq ft across three buildings and will provide 300,000 sq ft of offices, shops and leisure space and 250 homes, with 35% affordable.
The development will involve creating a new Canada Water high street and leisure and retail area, which will be called The Cuts.
Much of London’s regeneration tends to be biased towards one particular use, typically residential
“We’ve got 1m sq ft of retail to deliver as part of our masterplan, and we absolutely are committed to delivering an environment that creates and allows retail to evolve,” says Cariaga.
She adds: “Our vision for the high street is for pedestrian-dominated streets, but also for shop units and spaces that allow for retail over time. No longer do we think retailers will take 25-year terms on a specific amount of space,” she says”. We all know that retail is changing.”
Cariaga has begun conversations with interested occupiers, and notes that there has been “no single theme” in the type of businesses showing interest. “We don’t really want this to be a tech centre or a legal centre. London’s got plenty of those. What we think this place should be is a part of central London.”
British Land is expecting to begin construction within a year, with completion of the first phase expected in 2022.
To send feedback, e-mail emma.rosser@egi.co.uk or tweet @EmmaARosser or @estatesgazette
