The vacancy rate in the out-of-town retail sector remained at 9.2% in 2011, well below the 11.8% peak seen in mid-2009.
According to Trevor Wood Associates’ Definitive Guide to Retail and Leisure Parks 2012, the vacancy rate for retail parks with open A1 planning consent dropped from 7.9% in 2010 to 6.8%. Conversely, the vacancy rate for out-of-town stores that can only be occupied by bulky goods retailers rose from 10% in 2010 to 10.8% in 2011.
Home Bargains, B&M, The Range and Poundworld took more than 1m sq ft of out-of-town retail space between them in 2011; only B&Q took more space than any of these budget stores.
The guide found that downsizing and closure of some retailers slightly increased the amount of secondhand floorspace available in mid-2011.
The total retail warehouse market grew marginally from 173.8m sq ft in 2010 to 175.8m sq ft in 2011. The proportion taken by comparison goods retailers’ rose to an all-time high of 52.2% last year, compared with 48.9% in 2009.
Floorspace specifically on retail parks grew from 107.6m sq ft in 2010 to 108.14m sq ft in 2011. Comparison goods retailers increased their share of this market to 59.5%, up from 56.8% in 2010 and 52.6% in 2002.
Peak rents achieved on retail parks ranged from £8 per sq ft to £105 per sq ft at Fosse Park, Leicester, with the majority of parks recording rents between £10 and £20 per sq ft. Some 20% of the current peak rents were set by occupiers who subsequently went into administration or entered into a CVA.
Peaks rents at leisure schemes ranged from £12 per sq ft to £42.5 per sq ft.
Some 82 schemes are likely to proceed before the end of 2018, including three leisure parks, 11 leisure schemes, 11 shopping parks, 42 retail parks and five retail and leisure parks.
Trevor Wood, senior partner at Trevor Wood Associates, said: “The demand for space from the budget retailers and some more traditional high street stores means the out-of-town market remains in general good health.”
annabel.dixon@estatesgazette.com
