UK shopping centre vacancy rate continues to fall

Vacancy rates across UK shopping centres dropped for the third consecutive quarter in a row at the end of last year, accord to the latest figures from the British Council of Shopping Centres.

The data reveals a 0.8 percent fall in vacancies year-on-year for the final quarter of 2015. This follows a decline of 0.8 percent in the previous quarter and a 1.4 percent drop in the second quarter of the year, compared with the same period in 2014.

The number of multiple retailers in shopping centres increased by 1.5 percent while there was a 1.5 percent fall in independents.

England and Scotland were the best-performing nations with a 0.9 percent and 1.1 percent drop, while there was no change in the vacancy rates recorded for Welsh shopping centres. Regionally, shopping centres in Yorkshire and The Humber and West Midlands saw the largest drops in vacancies, recording a 1.6 percent and 1.5 percent drop, respectively.

Edward Cooke, director of policy and public affairs at the British Council of Shopping Centres, said: “Declining vacancy rates over three consecutive quarters in 2015 indicates a longer term trend of strong consumer confidence which we predict will continue into 2016.

“Our research also shows increasing competition for space coming from multiple chains and international retailers which are starting to grow at a faster rate than independents.”

Shopping centre vacancy rates drop for third consecutive quarter

Cooke added: “The drop in the overall number of units across UK shopping centres is evidence of the retail property industry adapting to the changing needs of occupiers. By proactive asset management and merging units, landlords are able to provide the larger spaces required by the multiple chains and attract big brands to shopping centres.”

Matthew Hopkinson, director of The Local Data Company, added: "The latest LDC/BCSC shopping centre index numbers show a positive outlook for shopping centres in one of the most important quarters for retailers in the year.

“The number of quality shopping centres has grown as a result of investment and strong retailer demand off the back of low inflation and improving consumer confidence. Also, of note is the continued growth of food and beverage outlets outside of the top 30 shopping centres where saturation appears to have been reached.”

Image: Westfield