By Venus Hew | Aug 26, 2009

UK prime shops vacancy rises 0.4%

UNITED KINGDOM: The average number of prime shops across the United Kingdom (UK) high streets available to lease has risen by 0.4% in the three months to August 2009, according to the latest Retail Availability report by real estate adviser Cushman & Wakefield.

However, the report also cites that, on an average UK high street, 12.6% of prime shops which are now either vacant or available to lease, represents half of what has been reported earlier on in February where the increase was 0.8%.

“Besides that, out of the 12.6% vacant, 3.3% comprises stores previously occupied by retailers which have since gone into administration and this figure has remained unchanged since May this year- where further evidence suggested that it is probably now that we have seen most of the major high street administrations”, Cushman & Wakefield’s head of retail services John Strachan says.

In addition, the above report states the fact that the 3.3% consisting stores occupied by retailers which has gone into administration remains at status quo since the month of May, also indicates that administrations are decreasing, while majority of high street retailers which are likely to go under may have already done so.

The overall UK figure, however, masks regional variations with the South West and Wales seeing an increase of 4.2% in the three months to August 2009. In addition, the region now has the joint highest availability in the UK with an average of 17.7% of high street shops vacant or available to lease.

Meanwhile, the outer London has also seen a significant increase to 17.7% with towns such as Watford and Bromley performing particularly badly.

The South East and Central London, where as, have the lowest levels of availability at 7.6% and 8.9% respectively. Also performing particularly well is the South East with -2% fewer shops now available, as expanding retailers have taken advantage of distressed situations to secure stores in prime towns such as Guildford and Brighton, the report states.

On top of that, the Central London has been the least affected by administrations with less than 1% of units available for this reason.

All in all, Cushman & Wakefield‘s Strachan takes a positive stance as he says: “Although the increase in availability within the regions is significant, Central London and the South East are now seeing a decrease and we therefore expect other regions will follow from 2010.”

“The retail market remains very challenging but we are seeing rising sales and confidence that the country will return to economic growth before the end of the year,” says Strachan.