Out-of-town retailers have been given a confidence boost with news that low vacancy rates are indicating the sector is stronger than what recent high-profile casualties may have implied.
Despite the administrations of big names such as Maplin and Toys R Us UK, new research carried out by real estate advisor Savills has revealed that just 5.96% of out-of-town units in the UK are unoccupied. The retail sector’s overall vacancy rate by unit was 10.86% in 2015.
In terms of square feet, just 3.62% of out-of-town retail space currently lies vacant, lower than the 5.36% rate in 2015 and 6.76% in 2012.
Mark Kozo, Head of Marketing at Portman Asset Finance, said: “There has been a lot of bleak media coverage surrounding the administrations of high-profile out-of-town retail businesses recently, so it’s great to hear that the over-riding picture for the sector is actually a positive one.
“It represents particular good news for those retail businesses looking to expand or innovate their offering, or new-starters planning to launch a fresh enterprise.
“Paying for a store fit-out and the resources you need to achieve this can be very expensive, so accessing fast and flexible funding through an asset finance agreement is an ideal way of securing a sound investment that can enable your business to grow.”
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