UK retail developments under construction increase in H2 2015
Global real estate advisor CBRE just released its latest Retail Warehouse Pipeline report for the second half of 2015.
It showed that while the retail warehouse pipeline increased just marginally, 1% since H1 2015, space under construction rose by 20%, up from 0.98m sqft. in the first half to 1.18m sqft. in H2.
Demand for units in retail parks has increased in recent years, leading to lower vacancy rates. Vacancy rates in UK retail parks were just 6.2% in H2, significantly less than the 11.5% seen on high streets and the 14.1% reported in shopping centres.
CBRE said that rising retailer requirements will see the pipeline increase in future years. For example, it said value retailers, like Home Bargains and B&M, want to open 50 stores this year. In order to satisfy the high demand, new units will be needed.
The retail advisor said: "Opportunities may also arise through store closures but these units will be in high demand, particularly in areas where retailers have a strategy to expand."
In January, figures from the BRC showed that UK retail parks saw their best footfall in two years, up 5.2% year-on-year, confirming they continue to be popular locations for British consumers.
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