Out of town retail vacancy rates remain low
The data from international real estate advisor Savills reveals that just 5.96% of units are currently unoccupied. This is significantly lower than the sector’s 10.86% vacancy rate by unit in 2015 and 12.17% in 2012.
Despite the recent administrations of Maplin and Toys R Us, both of which have a large out of town presence, Savills believes the outlook is positive. Looking at a worst case scenario where only 20% of the retailers’ out of town space was re-let by the end of this year, it said the sector’s overall vacancy rate by unit would still only rise to just 6.67%.
On a square foot basis, 3.62% of out of town retail space in the UK is currently vacant. This compares to 5.36% in 2015 and 6.76% in 2012.
Sam Arrowsmith, associate director in the research team at Savills, said: “Even with additional closures linked to the CVAs announced recently, vacancy rates will not change dramatically. Numerous retailers also remain acquisitive, including Lidl, Aldi, B&M, The Range and Home Bargains, which all plan to open further out of town stores in 2018.”
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