Head of Real Estate at Greenwoods Legal LLP | Expert in property law for hospitality, leisure and retail ventures
3 years on... only a third of former Debenhams stores are occupied, if you factor in stores under offer or in the process of being repurposed that still leaves HALF of all stores vacant. When you include closures by House of Fraser, Wilko and Marks and Spencers that's an awful lot of space 🧑🚀! Large format stores in high footfall locations are likely to relet with some repurposing, Bullring is a good example, with larger retail and experiential occupiers picking up the slack. But what do you do in the market towns where these empty stores are a blight on the high street? Landlords and asset managers should embrace the opportunity to reinvigorate a town centre and think outside of the traditional hospitality/leisure route. Now not everywhere can be a lab, but vibrant communities need a mix of retail, office and residential space so making use of permitted development rights to secure change of use and then further permissions to improve exterior facades could be a good route. Co-living and later living are also attractive options bringing new demographics in to town centres (does anyone know why so many later living developments are situated miles away from anywhere?). Retail insolvencies are inevitable but the options that space presents are endless. What's the best repurposing story you've seen? 👇 #landlordandtenant #retail #assetmanagement #commercialproperty #realestate
Key line for me in this is: “But what do you do in the market towns where these empty stores are a blight on the high street?” The answer I’d say, and based on years of tackling vacancy experience, is to have a proactive ‘place partnership’ made up of agents, landlords, businesses, community, council(s) and BID where there is one, on the case. What’s actually happening in some of the places you see these and other ex-department stores or banks sitting empty for ages is…? Nothing. Or at least nothing collective. It’s left to agents and landlords which can (a) mean solutions are slow to emerge and / or (b) the outcome isn’t one the place would’ve chosen.
Diana Tenkova
9mo
Interesting question you pose about senior living properties being located outside city centres Alex Hutchings, never really thought about it. Perhaps for quieter and more natural spaces? A favourite repurposing I’ve seen was an old prison facility converted into a luxury hotel - Mal Maison!
Omar Pabani
10mo
Offering a lot of insight into commercial real estate here Alex. It's funny, I've heard conversations where locals aren't happy about a property moving into office or resi, but surely it's better than vacant? And with more people, there is more demand for commercial use of other buildings.
Richard Cobb
10mo
Good insight and perspective. The challenges are varied including depth of floor slab with no natural light, floor to ceiling heights, deleterious materials and compliancy to name a few with high Capex costs to convert. Repurposing is one way, but redevelopment is probably bound for the remaining space which will take time and capital. Government can help unlock this with new policies targeted at reinventing these spaces.
Kevin Ley (he/him)
10mo
I am sure that your observations on repurposing Alex are covered in the parties recently launched manifestos - later living is an area which needs thought given your point on a lot of developments being logistic nightmares for the occupants to access essential services and to continue an independent existence….
Gary Temprell
10mo
Even where the store is in a managed shopping centre like southgate Bath, the old Debenhams store has been left empty for over 3 years now. Despite planning applications to convert it to 4 ground floor shops and office space above, still nothing happening. I feel that the planning process needs to fast track some projects to avoid years of discussion and empty sites. Meanwhile stores around the empty units start to lose faith and customers! British land, who own this site, have nothing on their website about future plans for this huge part of southgate, despite it being the main building visitors see when leaving Bath spa train station. A missed opportunity to interact with their customers, even leaving the old Debenhams signage above the doors and just blacked out windows. why not let the other brands in the centre use the empty windows to display their products for free? and at least have an update on current plans on your southgate website #britishland #southgatebath
Jeff Robertson
10mo
Unfortunately not all are in locations where conversions to office or residential will stack up. I have a client who owns one and will happily sell the freehold but there doesn't appear to be a viable alternative use.
Rafi Katz
10mo
While repurposing for retail and leisure is a safe bet in high-traffic areas, let's get creative with smaller towns! Mixed-use developments with co-living spaces for young people and senior living options could revitalize town centers. This would attract new demographics and breathe life back into these areas.
Property Investments & Developments
10moThey are very difficult to acquire. I’ve tried. The main problem is they are part of larger shopping centres and not available to buy freehold; separately. Usually owned by pension funds so they are very particular who they let in as well regarding leasing