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Local Data Company - End of Year Vacancy Report 2011
15th February 2012, by Keith Nelson
We welcome the Local Data Company's most recent report on retail vacancy in Great Britain which is timely in its release and focuses on an issue recently highlighted in the Portas Review.
The headlines are not unexpected – a GB vacancy rate of 14.3% with 183 retailers falling into administration, during 2011.
As LDC's report says, we can expect another hard year in the retail sector during 2012, with consumer expenditure growth expected to be the lowest for 40 years at 1.2%.
The results of LDC's survey are important for all stakeholders but especially for those where there are already high levels of vacancy. The question that must be answered is just what is the function of each of our town centres? Those town centres that have failed to attract retailers to fill the voids need to reinvent themselves. They can no longer continue to compete with the large retail centres and especially the regional shopping centres like Bluewater, Westfield and The Trafford Centre.
A major point of concern is how many shops that were trading during LDC's survey were occupied on a temporary basis? We are aware of a number of landlords filling voids to reduce rates liabilities and other outgoings. We would worry that LDC's figures are in fact conservative and hide the true picture, which some observers have put as high as 50% in the worst hit locations, when short term lettings are taken into account.
What everyone who attended LDC's recent seminar did agree on was that there is no simple solution to the problem faced in many of our town centres. It is easy to blame out of town retailing, the internet and upward only rent reviews, but there are many other factors that have led to the decline of many of our traditional town centres.
The Portas Review has perhaps started the debate, but it will take co-operation of many stakeholders if we are to find solutions to solve what is a major issue in many of our traditional towns and cities.
