Vacancy rates improve but long-term vacancy increases

Shop vacancy rates have improved in the first half of 2015 but the number of long-term vacant shops has increased by 24.4%. 

This is according to new figures from the Local Data Company (LDC) which found that the retail and leisure vacancy in the UK fell from 11.9% in the second half of 2014 to 11.7% in the first half of 2015.

Despite the improved vacancy rates, the number of long-term vacant units – those that have been unoccupied for more than three years – increased by 24.4% to 9,650 units during the period.

Wales reported the highest national vacancy rate at 15% while London was the best performing region by a “long way”, with vacancy rates at 7.9%.

Meanwhile, shopping centres continued to have the highest overall vacancy rate at 14.8% (down 0,4% since end of 2014), followed by town centres at 11.7% (down 0.2%) and retail parks at 6.6% (down 1.4%).

Matthew Hopkinson, director at the LDC, said: “Cautious optimism is exactly what the latest vacancy rates data from LDC reveals from the first half of 2015. The good news of reducing vacancy rates has run in parallel to better economic performance within the UK, and growing retail sales and consumer confidence.”

However he added that the persistence of vacancy is a major indicator of structural decline. “Firstly, of all the town centre vacant units just under a third have been vacant for more than three years,” he said. “This equates to nearly 10,000 empty shops, which is the equivalent size of over six Liverpool city centres.

“Secondly, if units are not let within a year then there is a general trend that they will remain unoccupied and this is particularly true for secondary retail parks and small high streets. The conclusion from this can only be over-supply or the wrong size of space in the wrong location.”