Ellen Gordon’s Post

UK Retail Resurgence: A Beacon of Economic Recovery The UK retail landscape is witnessing a remarkable turnaround, with city centres and key malls leading the recovery post-pandemic. The latest Vitality Rankings report by Newmark reveals a return to pre-pandemic performance levels for many retail destinations. City Centres Thrive: Once bustling hubs like Cambridge city centre are reclaiming their top spots, indicating a resurgence in shopper confidence and spending. Luxury Destinations Excel: Affluent areas such as Sloane Street and Knightsbridge are experiencing a renaissance, thanks to significant investments and the patronage of high-net-worth individuals. Adaptation and Renewal: The report highlights the creative adaptations retailers are making, with an increase in dining spaces and online brands venturing onto the high street. Future Outlook: With proactive steps being taken to redevelop and improve retail spaces, the future of UK retail looks promising, poised for further growth and vitality. The retail sector’s recovery is a testament to the resilience and adaptability of businesses and consumers alike. It’s apositive sign for the UK’s economic health and a beacon of hope for continued prosperity. #UKRetail #EconomicRecovery #RetailResilience #BusinessAdaptation #ConsumerConfidence

Despite predictions of a post-pandemic decline in brick-and-mortar retail, demand for retail property is on the rise, according to Ray White Commercial (RWC). Over the past 18 months, commercial property investment has been dominated by ‘beds and sheds’ (accommodation and logistics). Industrial property activity has remained steady, still making up the lion's share of the commercial property market. Meanwhile, sales of office space have declined. But now, RWC has seen a swing toward ‘bricks and clicks’ (physical and online retail), with investors poised to capitalise on the return to physical retail. Retail assets are delivering strong results, leading total returns for two consecutive quarters, including a 2.8% gain in the latest period. The food, supermarkets, and services sectors account for the majority of consumer spending and are therefore attracting greater interest from investors. Looking ahead, RWC expects the retail market to continue to gain momentum in 2025. _______ If you want to purchase a retail asset in Sydney, I can help you secure investment finance. To discuss your scenario, schedule a chat at https://buff.ly/3YZu3wO

Retail property investments have been performing well in 2024, supported by positive operational metrics like re-leasing spreads, decreasing vacancy rates, and low retailer insolvencies. Now is an opportune moment to capitalize on retail properties to maximize your investment potential. These insights are a must-read. #AnnexionPartners #PoweringPossibilities #BuiltEnvironment #Retail #CommercialProperty Ethan Tan, Kotomi Mori, Daniel Lim, Sharwn Gill, Philbert Anand, Asher T., Adam Cheok, Joel Chua, Eros Jezreel Ng, MBA, Sittie Aisah Nuska

As we head swiftly towards what will inevitably be a wet Bank holiday weekend, this will leave a warm glow.......... ☀ Improved consumer confidence & a steady month on month drop in inflation has seen "take up" in retail rise sharply across the UK in the first quarter of the year Commercial real estate data provider, CoStar UK, estimate the increase in leasing activity represents a 25% uplift on the same period a year ago, a significant shot in the arm of the retail sector. Whilst the volume of activity increased, so to did the size of many of the deals concluded. Leasing activity in UK shopping centres has helped fuel the numbers with some giant's of the high street Marks and Spencer, Sportsdirect.com, B&M Retail, Frasers Group, Abercrombie & Fitch Co. & Lane7, all leasing significant space. This is exceptional news for the high street. Havwoods is a market leading, internationally recognised supplier of beautiful timber solutions, working in partnership with many of the UK's most recognisable & highly respected retail brands. Whilst our #roots are firmly in the UK, we are an international business with a global footprint & global capabilities. If you have an existing or forthcoming requirement, we will have a solution for you. Talk to me. #retail #retailsector #leasing #highstreet #highend #shopping #shoppingcentre #uk #timber #timbersolutions #surfacesolutions #flooring Kasia Lovell Ralph Simpson Lyndsey Dyson Jenson Calder Edward Eagle

Class A Retail Spaces are currently experiencing high demand due to national chains seeking smaller footprints. Big names in the industry are strategically combining e-commerce with compact brick-and-mortar locations. #Retail #RealEstate #Ecommerce

New data from MRI Software has shown that footfall in UK retail destinations rose by 3.7% in May from April, mainly driven by a boost in high streets and retail parks, and a marginal rise in shopping centres. The trend aligns with improved consumer confidence and gives a positive sign for property investors looking at retail property.   Weekend traffic rose by 2.1% year-on-year, with the first half of the month seeing much stronger performance than the latter half, with warmer weather and the early May bank holiday pushing gains.   https://bit.ly/4aYzNtk   #Retail #HighStreet #ShoppingCentres

WH Smith's potential sale of its UK high street business signals a dramatic shift in retail strategy, reflecting the urgent need to adapt to changing consumer behaviors. With 500 stores and 5,000 employees in the balance, this move prioritizes travel retail, a segment that now constitutes 75% of the company's revenue. As more consumers lean towards online shopping, the high street faces significant challenges—now is the time for retailers to focus on high-margin growth areas. For WH Smith, divesting its high street presence isn’t just about cutting losses; it's a strategic realignment to tap into the booming travel market. This decision echoes a broader retail trend—companies must reevaluate their operations to thrive in an increasingly digital world. How will the market respond? Only time will tell, but this pivot may well redefine not just WH Smith but the future of UK retail as a whole.

The sun shone at Completely Retail last week, which perhaps added to the overwhelmingly positive mood. The P-Three team were there, including co-founder Hannah McNamara speaking at the fireside chat on ‘The Evolution of Leasing in the 2020s’ moderated by Lisa Pilkington, Consultant Editor, CR News, BBC Journalist alongside Lucy Stainton, Commercial Director, LDC  and Dan Mason, Managing Director, MultiRealm. A few common themes truly stood out.   Limited Availability: For prime retail, restaurant and leisure space there is still healthy demand, with limited availability within the top shopping centres across the UK. As forecast in our 2024 predictions this could be the year of limited (but still important) retail and restaurant rental growth. Destination Survival: Outside established shopping centres, only locations with a clear purpose, well-articulated narrative, optimal retail/restaurant/leisure space, and a vision reflecting the catchment area will thrive. The Turnover Lease Debate: Turnover leases, especially on temporary agreements, remain a contentious topic. Transparency, partnership, and a shared vision between parties are crucial for success. Exploring alternative forms of currency, such as social media presence and brand followers, may also become relevant. Lease Term Evolution: The outlet model of turnover only has not been adopted by the rest of the retail market in the same way. During and post covid we saw a huge amount of innovation around flexibility, lease lengths and a more prevalent use of turnover. As markets have recovered in prime, and where there is demand, we are seeing a reversion to standard lease terms, which are again the norm. Adaptation & Community: The future of the retail sector will focus on adaption to changes in demographics, flexibility and adaptive reuse of space, sustainability and resilience and community focused spaces. What was your favourite takeaway from the day?   #PThree  

The current market conditions present a compelling case for investing in retail centers. In a climate of decreasing interest rates, acquiring retail properties brings distinct benefits. Lower interest rates translate to reduced borrowing costs, enhanced cash flow, and the potential for greater returns on investment. The ripple effect of lower rates typically results in heightened consumer spending, driving up foot traffic and sales for tenants, which is advantageous for both landlords and tenants. Moreover, real estate assets tend to appreciate as they garner increased attention from investors in such economic environments. For those contemplating business expansion, now is an opportune moment to enrich your portfolio and optimize your investment returns. Seizing this moment could prove to be a strategic move to capitalize on the advantages offered by the current market dynamics. #RealEstate #Investing #RetailInvestment #InterestRates #CommercialRealEstate

Great to see UK shopping centres getting thumbs up at the Financial Times. Some good commentary from Andrew Whiffin and probably the most important is the perception that values are bottoming out with new entrants appearing in the market. Our team at Lunson Mitchenall have marketed five shopping centres in the past few months and what is clear from this process that this positive news around occupational demand and the sharp correction of values is attracting a brand new wave of money to the sector. Looking forward, I'm keeping a sharp eye on what statements will be made in the coming weeks by the new government around business rates reform. A reform of this tax on occupation will have a positive impact on retailer’s outgoings, rental affordability and thus investment values.