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“ As a country , we have too much space dedicated to retail . We don ’ t need as many physical shops and in a number of locations they may be changed to logistics , with the bigbox retail format becoming refocused ”
Last year was a turbulent time for the retail sector , with more than 140,000 jobs lost , according to the Centre for Retail Research . More shops are likely to fail in 2020 , with restrictions sending many more hospitality businesses to the wall . Yet neither of these trends are new . Hospitality was just about keeping its head above water , but retail has been facing major structural challenges for a number of years . “ As a country , we have too much space dedicated to retail ,” says Jason Baggaley , fund manager of the Standard Life Investments Property Income Trust . “ We don ’ t need as many physical shops and in a number of locations they may be
“ Secondary offices have kept rents suppressed and once they are gone , it will drive up the quality of office space and rental prices with it ” changed to logistics , with the big-box retail format becoming refocused into more logistical sites .”
Shops and offices for homes The planning freedoms first introduced under David Cameron ’ s government have been revived , giving property owners the opportunity to convert commercial properties into residential ones . These permitted developments are positive not only for the owners , but for the market as a whole , says Richard Shepherd-Cross , manager of Custodian REIT . “ This is positive because secondary offices have kept rents suppressed and once they are gone , it will drive up the quality of office space and rental prices with it ,” he explains . While this seems a certainty for suburban and regional areas , the lack of infrastructure – shops , schools , hospitals , doctors ’ surgeries – makes it unworkable for families if developed in city centres . The work environment also poses challenges for developers . Starter
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