Page 16 - Caxtons KPMR 2021

Caxtons’ Property Market Analysis
Retail Performance
In contrast to the depths of the initial pandemic lockdown, the retail sector remained open throughout the autumn and winter lockdowns. The leisure sector experienced a more challenging period with many of Kent’s town centre and
out of town park occupiers only able to open their doors over recent months. With the release of restrictions over the summer, we can start to take stock of the new retail landscape.
In June, the value of retail sales was nearly 10.6% ahead of its pre-pandemic levels. While there has been a small shift back towards spending in physical stores over the summer, the proportion of sales conducted online remains substantially higher than before the crisis, representing over a quarter by value. The volume of sales by retailers with no physical store presence stands 40% ahead of February 2020.
The latest analysis by the BRC-LDC Vacancy Monitor (April 2021) found the overall retail vacancy rate across the UK increased to 14.1% in the first quarter of 2021, 1.9% ahead of the same point last year. Further administrations across the sector including long standing high street names such as Gap and Paperchase have added to vacancies.
While physical retailing may have made a small come-back in statistical terms, the consequences of the pandemic, hastening a decade long shift in consumer behaviour, are clear across Kent’s high streets and retail parks. Major retail centres such as Tunbridge Wells, Maidstone and Canterbury have seen few new lettings on their prime streets over the last year. All the county’s main towns have experienced increases in vacancy rates with inevitable implications for rents and lease terms.
The year has seen enhanced landlord incentives and greater flexibility on lease lengths and terms, with a growing number
£1,200per m2
Tunbridge Wells average prime Zone A high street rent remains highest in Kent despite sharp fall Cradick Retail
-3.5%
Average annualised change in the Kent average prime Zone A high street rent over the last 5 years
Cradick Retail
of retailers agreeing rents paid monthly in arears. ‘Covid clauses’ are commonplace, with agreed rent reductions should the store be forced to close.
The average prime Zone A high street rent in Kent has fallen 15% over the last 12 months although this has been driven primarily by the larger retail centres which have felt the loss of national retailers more acutely. While there is little letting evidence, smaller towns are judged to have seen rents remain flat over the last year.
Tunbridge Wells has seen the sharpest fall in prime rents, down 30% in the last 12 months, with a significant increase in vacancies in the core shopping area. However, this has also been accompanied by a shift in ‘pitch’ towards the High Street which is now at full occupancy for the first time in many years. This follows lettings this year, including Gail’s Bakery at 21 High Street. Gail’s Bakery also opened in
Ground floor retail space at 1887 The Pantiles, the new unique landmark development in Tunbridge Wells.
High street Zone A retail rents
2018 2019
2000 1800 1600 1400 1200 1000
800 600 400 200
0
2020 2021
Source: Cradick Retail
Kent average prime Zone A high street rent
1000 950 900 850 800 750 700 650 600 550 500
Source: Cradick Retail
14 Kent Property Market Report 2021
CREDIT: DANDARA
Ashford Canterbury Dartford Dover Folkestone Gravesend Maidstone Medway Sevenoaks Sittingbourne Tunbridge Wells Tonbridge Thanet
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
£ per m2
£ per m2