Page 214 - Minutes of meeting

The Commercial Challenge

Demand & Supply - Retail

Headline Indicators (Δ past 12 months - CoStar)

Total Retail Stock

The source for the majority of retail market intelligence is CoStar, as the ESPS did not assess the retail
market in any detail however, the Barrow Borough Council Retail Vacancy report has helped inform
vacancy rates analysis.

As with industrial and office stock, CoStar data suggests, that there has been no increase in retail
stock over the last 12 months, with stock remaining in the region of 1.7m sq.ft. This mirrors the trend
at the Cumbria level, which has seen a marginal increase in retail stock (c. 1% increase).

Barrow Borough Council report estimates retail vacancy rates are currently around 17%, which is
significantly higher than the national average (11%) and highlights demand for retail in Barrow is low. It
is also apparent that there are a number of long term vacancies across the town centre, with nine
units being continuously vacant for over 5 years. The recent announcement of Debenhams filing for
administration could have a impact on the levels of vacancy.

Market rents have decreased over the last 12 months and are currently at £12 per sq.ft which is
lower than the Cumbria average (£15 per sq.ft).

CoStar data suggests there have been a total of six lease deals agreed across Barrow in the last 12
months, with the largest being Aldi supermarket at Hollywood Retail Park. There has also been a new
lease agreed for the New Look store on Portland Walk however, whilst it has been signed, this lease will
not take effect until 2021.

There are currently no retail units under construction and the existing stock is rated between 2-3
stars, with only two 4-star units, indicating low quality stock overall.

Copyright © Hatch 2018. All Rights Reserved. Data source: CoStar, 2020