Retail warehousing, shopping parks and leisure

Abstract

Retail warehousing is generally defined as ranging from ‘bulky goods units’ to modern progressive shopping parks. As a sector it outperformed all other property markets in the last ten years, with returns surpassing all other forms of retail property investment. It is generally believed that the sector will continue to outperform other property sectors and will be at the forefront of the wider retail market. 2004 was a strong year for this sector and, in the early months of 2005, confirmed transactions, together with speculation, suggest that this year will be no different.The market is maturing in all respects. Investors are becoming increasingly discerning and have heightened requirements in the fields of retail warehouse management, marketing, commercialisation, design, tenant and rental aspirations, expectations and quality advice from specialist consultants. Retailers are maturing in their requirements, with intensive utilisation of space, flexibility of use and store design and signage, and in some cases taking hard-earned lessons from the high street to the new arenas of out-of-town shopping.The market has seen a steady increase of new retailers: traditionally the vanguard of a few provide both the property market and the consumer with an ever-increasing range of retailers.Ironically, some of the earliest retailers who ventured out of town, such as the electrical retailers, have found that rentals have risen to such a level that they are being forced back into secondary locations. This creates opportunities for landlords to be creative asset managers.