RETAIL
Market driven by strong demand for versatile, digital and sustainable spaces
The retail property sector in Q3 2024 continues to be increasingly driven by the need for flexibility, sustainability and the integration of technology. Property developers, landlords and investors are designing and building in flexible forms that can adapt to these trends by offering versatile, tech-enabled and environmentally-friendly spaces that are likely to see stronger demand and higher occupancy rates in the future.
With the continued rise of e-commerce, successful cross-platform retailers are downsizing their physical stores and portfolios, focusing more on showrooms or experience centres rather than large traditional retail outlets. This trend will inevitably lead to a repurposing of existing retail spaces into smaller, more flexible units that can serve multiple tenants or purposes.
Interest rates, GDP growth, employment rates and consumer confidence remain volatile in the wake of the UK general election, with retail operators continuing to invest in customer price. However, occupier property-related spend and investment are showing signs of recovery after the initial impacts of the Building Safety Act’s secondary legislation coming into force and building condition issues such as reinforced autoclaved aerated concrete (RAAC).
INSIGHT
The future of retail spaces: Adapting to the hybrid shopping experience
The retail industry is undergoing a profound transformation, driven by the convergence of physical and digital experiences. As hybrid models gain traction, retailers are seeking innovative ways to create immersive and convenient shopping environments.
