Cara Imbrailo comments in Property Week, on how to unlock supply during a shortage of retail park space
min readNew research has shown that available space in the retail park sector is close to capacity, demonstrating a severe shortage of available space despite ongoing demand.
Data shows that vacancy rates stand at 4.3%, however available space falls to 1.8% if long-term vacant and obsolete units are excluded. This equates to less than one year of supply, which is cited as a reflection of the sector's high levels of occupier retention.
Lower supply has also led investors to commit enthusiastically to retail parks, investing in existing sites in part due to some local authorities' reluctance to grant planning consent for new schemes. An evolving variety of occupiers has also bolstered the long-term occupancy of retail park floorspace.
Cara Imbrailo, Partner in our Real Estate team, comments in Property Week:
The solution to the shortage is not simply a case of building more parks – planning reform has a key role to play [in filling the supply gap].
Faster determination of applications for new sites and extensions to existing parks, and a more pragmatic approach to the rules that prioritise town centre locations, would help unlock supply.
Read the full article in Property Week here.
Related content: Drapers
