The Definitive Guide to Retail & Leisure Parks Executive Summary by Trevor Wood

Size: px

Start display at page:

Download "The Definitive Guide to Retail & Leisure Parks Executive Summary by Trevor Wood"

Aron Underwood
5 years ago
Views:

1 The Definitive Guide to Retail & Leisure Parks 2012 Executive Summary by Trevor Wood

2 Executive Summary Introduction I would like to thank every one who has passed on comments to me in person or written to us. It is very rewarding to be told our reviews are considered indispensable, warmly welcomed and are widely quoted throughout the retail and property industries. This year s review is larger than ever as we have, yet again, extended many analyses as a result of continuous research by my colleagues at Trevor Wood Associates. Due to the effect the economy has had on the market during the past eighteen months this has, once again, involved comprehensive updating. As previously, the contents of the review have been discussed with many of our database clients and subscribers to the review. Following these discussions, and in conjunction with our designers at Rubric, we have tweaked the format, also introducing regional vacancy analyses and added more detail to our peak rents analyses. There is, as always, a considerable amount of informed comment within the review supplied from owners, managers, tenants and agents or derived from desk research. Established Schemes I would like to take this annual opportunity to thank the hundreds of people within the industry who continue to help make our reviews as useful as possible. These people kindly responded to letters, s, questionnaires and telephone calls. Your invaluable help continues to make our reviews unique and as useful as possible to everyone in the industry. I would also like to thank our growing band of database clients. More than one hundred of our clients regularly pass on updated market news and information throughout the year to Trevor Wood Associates and this makes our task producing the reviews that much easier! Now this review has been put to bed, we will soon begin compiling our companion review, Going Shopping The Definitive Guide to Shopping Centres, which you may find of interest. Further details can be found on our website or you may wish to contact us for details! The Definitive Guide to Retail & Leisure Parks 2012 contains 332 pages of information and copies of the full review are available for 495 from the address overleaf. The report contains reviews and detailed listings not only of those schemes currently trading but also those proposed to open by Detailed listings for each scheme include location, scheme name, GIA, tenants, scheme type, nearby foodstores, other nearby developments, planning permission, owners / investment managers and letting agents. For proposed schemes we also show planning status, developer and year open. Recent lettings are detailed together with recent investment transactions, current and proposed developments together with numerous league tables and photographs. I sincerely hope you find the information contained within the review of practical use and interest. As always, my colleagues at Trevor Wood Associates and I welcome any comments you may have that could help make the 2013 review even better and we look forward to receiving periodic updates regarding any changes that take place. Trevor Wood Senior Partner Trevor Wood Associates The key points from this detailed review of 1,567 Retail Parks, Shopping Parks, Retail and Leisure Parks, Leisure Parks, major leisure schemes or retail warehousing developments are summarised below. Our research identified 1,485 established schemes, that is to say they are trading or in the course of construction. These include 98 Leisure Parks, 96 Leisure schemes, 857 Retail Parks, 64 Shopping Parks, 34 Retail and Leisure Parks and 305 Retail Warehousing developments. The regional location of the established schemes is as follows: - Scheme Type EA EM N NI NW SC SE SW WA WM YH UK Leisure Park Leisure scheme Retail and Leisure Park Retail Park Retail Warehousing development Shopping and Leisure Centre Shopping Park Total ,485 Top 10 Retail Parks For a listing of the top 100 please see the full review Rank Scheme Location GIA Sq. Ft. Year Open Region 1 Middlebrook Retail & Leisure Park Bolton - Horwich 646, North West 2 Castlepoint Bournemouth - Charminster 645, South West 3 Clifton Moor Centre (Phases 1-4) York - Clifton Moor 577, Yorkshire & Humberside 4 Parkgate Shopping Rotherham 565, Yorkshire & Humberside 5 The Brewery Romford 530, South East 6 Fort Kinnaird Edinburgh - Newcraighall 506, Scotland 7 New Mersey Shopping Park Liverpool - Speke 483, North West 8 The Junction, West Thurrock Shopping Park Grays - Thurrock 469, South East 9 Fosse Shopping Park Leicester - Narborough Road 416, East Midlands 10 Greyhound Retail Park (Phases 1-3) Chester - Sealand Road 415, North West Top 10 Retail Warehouse Clusters For a listing of the top 100 please see the full review Rank Cluster Name Location GIA Sq. Ft. Region 1 Westwood Road Broadstairs 1,109,538 South East 2 Lakeside Grays - Thurrock 1,033,019 South East 3 Cribbs Causeway Bristol - Cribbs Causeway 960,133 South West 4 WestQuay Southampton 876,478 South East 5 Sealand Road Chester - Sealand Road 809,290 North West 6 Middlebrook Bolton - Horwich 796,661 North West 7 Charminster Bournemouth - Charminster 770,000 South West 8 Newmarket Road Cambridge 748,828 East Anglia 9 Parkgate Rotherham 738,895 Yorkshire & Humberside 10 Thornaby Way Stockton-on-Tees - Thornaby 736,845 North

3 Top 10 Leisure Schemes For a listing of the top 50 please see the full review Rank Scheme Location GIA Sq. Ft. Year Open Region 1 The O2 Entertainment District London - Greenwich 600, South East 2 Clarence Dock Leeds 555, Yorkshire & Humberside 3 Union Square Aberdeen 550, Scotland 4 Westwood Cross Broadstairs 475, South East 5 London Trocadero London - Piccadilly 450, South East 6 Swan Centre Eastleigh 445, South East 7 Gunwharf Quays Portsmouth 444, South East 8 Xscape Milton Keynes 424, South East 9 Star City Birmingham - Nechells 399, West Midlands 10 Xscape Renfrew - Braehead 374, Scotland Leisure Facilities The trend to incorporate leisure facilities such as Health & Fitness Centres appears to have resumed. 32 Retail Parks, Retail and Leisure Parks or Shopping Parks incorporate Cinemas, 29 include a Bowling Alley or Family Entertainment Centre and 99 have Health & Fitness Centres. Of the 31 Shopping and Leisure Centres, 21 incorporate Cinemas, 9 include a Bowling Alley or Family Entertainment Centre and 20 have Health & Fitness Centres. 87 Leisure Parks incorporate Cinemas, 55 include Bowling Alleys and 46 have Health & Fitness Centres. 48 out of 96 Leisure Schemes incorporate Cinemas, 17 include a Bowling Alley and 44 have Health & Fitness Centres. Peak Rents for Retail Parks For a detailed breakdown since 2002 please see the full review There continues to be a wide variation in peak rents achieved on Retail Parks from 8.00 per sq. ft. to with the majority of parks recording peak rents between and Partly due to delayed reviews and partly due to a few key lettings, the proportion of Retail Parks with peak rents between per sq. ft. and rose slightly to 11%. Similarly, 10% of Retail Parks now have peak rents above per sq. ft. - virtually the same as last year with just two additional entries that are highlighted in the league tables. The entry level for the Top 100 Retail Park Rents has risen marginally from to with just one re-entry in this year s list. We should, however, note that 20% of the current peak rents were set by occupiers who subsequently went into administration or entered into a CVA with some, like Allied Carpets and Peacocks, still trading today whilst others, such as Focus, Land of Leather, MFI and Rosebys, have gone forever. 70% of Leisure Park peak rents were in excess of per sq. ft. and peak rents ranged from per sq. ft. to % of Retail Warehousing developments recorded rents below 15.00, with rents ranging from 6.00 to per sq. ft. Highest rent achieved Range (per Sq. Ft.) % % Over Top 10 Retail Park Rents For a listing of the top 100 since 2007 please see the full review Rank Highest Rent per Sq. Ft. Scheme Location GIA Sq. Ft Fosse Shopping Park Leicester - Narborough Road 416, Brookfield Retail Park Cheshunt 90, Colney Fields Shopping Park St Albans - London Colney 58, Birstall Shopping Park Leeds - Birstall 163, Castlepoint Bournemouth - Charminster 645, Fforest-fach Parc Swansea - Fforest-fach 134, The Fort Shopping Park Birmingham 283, Teesside Shopping Park Stockton-on-Tees - Thornaby 348,553 9= 9= Fort Kinnaird Edinburgh - Newcraighall 506,000 9= 9= New Mersey Shopping Park Liverpool - Speke 483,268 9= 9= Brent South Shopping Park London - Hendon 92,000

4 Vacant or Available space For a more detailed analysis since 2002, including a regional breakdown, please see the full review With little development, Second-hand supply has helped maintain growth by a few dynamic retailers. Administrations, receiverships and declining confidence among some retailers led to an explosion in available space for a few years but a significant proportion of this has been occupied by expanding retailers during the past eighteen months, particularly Open A1 consented units. Since the beginning of 2011 tenants such as Focus and TJ Hughes have either withdrawn from the UK, been put into administration or entered into a CVA. With downsizing by other retailers, the combined impact of these developments considerably increased the amount of Second-hand floorspace available in mid Many retailers, including B & Q, have since taken some of this space together with Dynamic Comparison Goods retailers such as B & M, Go Outdoors, Hobbycraft, Home Bargains, Pets at Home, Poundworld, Smyths Toys and The Range. Between them these eight retailers occupied 1.5 million sq. ft. of retail warehousing floorspace during the past twelve months. This helped the retail warehousing vacancy rate remain at 9.2%, well below the peak of 11.8% seen in mid At the end of 2011 we calculate Open A1 vacancy as 6.8%, compared to 7.9% in 2010 with Open Non Food falling to 9.0% from 9.4% and other schemes increasing from 10.0% to 10.8% in Property research traditionally focuses on the development pipeline for retail parks and warehousing but we look at the market from a different perspective. Trevor Wood Associates have the most comprehensive retail warehousing database in the United Kingdom. What we are uniquely able to focus on is the considerable hidden supply of Second-hand space coming on to the market each year. Despite the take-up of space by expanding retailers highlighted within our review there was, during the past five years, an abundance of Second-hand retail warehousing that came on to the market. Much of this has been successfully re-let or assigned and fuller details are shown within the review. Many tenants that may be considered discount or budget retailers were highlighted as increasing their presence in Going Shopping 2011 The Definitive Guide to Shopping Centres and many of these increased their presence in not only the leading shopping centres but also on retail parks. These retailers include H & M, Poundland, Sports Direct and Wilkinson. Other expanding retail park retailers in this category include B & M, Go Outdoors, Home Bargains, Poundstretcher, Poundworld and The Range. While compiling our review, Best Buy withdrew from the UK, Peacocks and Bon Marche were both bought out of administration, as was the Game group at the beginning of April Retail Warehousing Vacancy rate By broad planning consent % Our research shows the total retail warehouse market grew marginally to million sq. ft. in 2011 from million sq. ft. in The proportion taken by Comparison Goods retailers (excluding DIY) rose to an all time high of 52.2% in 2011 compared to 48.9% in Q4 Q4 Q2 Q4 Q2 Q Q Q Within the total market, floorspace on Retail Parks grew to million sq. ft. in 2011 from million sq. ft. in Excluding DIY retailers, the share of Retail Parks floorspace in 2011 occupied by Comparison Goods retailers increased to 59.5% from 56.8% in Key Vacancy Rate - All Retail Warehousing Vacancy Rate - Open A1 schemes Vacancy Rate - Open Non Food schemes Vacancy Rate - Bulky Goods or Restricted schemes Top 5 Letting Agents - Retail Warehousing For a listing of the top 40 since 2009 please see the full review Top 5 Managing Agents - Retail Warehousing For a listing of the top 20 since 2009 please see the full review Rank Letting Agent Area Million Sq. Ft. Instructions Rank Managing Agent Area Million Sq. Ft. Instructions 1 1 Wilkinson Williams Morgan Williams Savills Harvey Spack Field Cushman & Wakefield Savills Workman Jones Lang LaSalle Capita Symonds Edgerley Simpson Howe

5 Executive Summary Top 10 Investment Managers - Retail Parks For a listing of the top 20 since 2002 please see the full review For the seventh year running, British Land are the leading investment manager of Retail Parks in the UK and their closest challengers are again Aviva Investors with Standard Life Investments, Prudential Property Investment Managers and LaSalle Investment Management maintaining their positions while CBRE Global Investors leapfrog to 6th place. Fifteen investment managers covered more than 2 million square feet of retail parks, compared to fourteen last year while thirty two investment managers cover more than 1 million square feet of retail parks, two more than last year. The ten leading investment managers now look after 39.8% of the overall million square feet of retail park floorspace, compared to last year s 39.4%. The top twenty investment managers now look after 57.1% of total retail park floorspace compared to 56.3% last year. Rank Owner / Investment Manager Total Area Retail Parks (Million Sq. Ft.) British Land Aviva Investors Standard Life Investments Prudential Property Investment Managers LaSalle Investment Management CBRE Global Investors Hammerson Land Securities Henderson Global Investors Aberdeen Asset Management Top 10 Investment Managers - Retail Warehousing For a listing of the top 20 since 2002 please see the full review Widening the analysis to include free-standing retail warehouse units, such as B & Q, IKEA and Toys R Us always changes the picture dramatically. For the seventh year in a row, British Land maintain their lead over Aviva Investors and have 11.2 million square feet under active management, slightly up on last year. CBRE Global Investors jump four places to third following a 44% increase and there are three new entries in the top twenty. The top ten managers look after 33.1% of the overall million square feet of retail warehousing floorspace, compared to 31.6% last year. The top twenty look after 49.0% of total retail warehouse floorspace, compared to 47.6% last year, while three investment managers feature in this overall top twenty but not in the retail parks analysis. Rank Owner / Investment Manager Total Retail Warehousing (Million Sq. Ft.) British Land Aviva Investors CBRE Global Investors Prudential Property Investment Managers Standard Life Investments Threadneedle Property Investments LaSalle Investment Management Henderson Global Investors IKEA Aberdeen Asset Management Top 10 Retail Park Tenants For a listing of the top 50 since 2002 please see the full review Over 950 different tenants trade from Retail and Leisure developments. The tenants most likely to be found on Leisure developments, who are present on more than 50 schemes, are Cineworld, Frankie & Benny s, McDonalds, Nando s and Pizza Hut. Non-food tenants most often found on Retail Parks, Shopping Parks or Retail and Leisure Parks are Argos, Carpetright, Currys, Halfords and Pets at Home. For the fourth year running, many of the top fifty Retail Park tenants have either reduced their retail park floorspace over the past year or shown nil growth although six tenants have shown double digit growth and two have increased their floorspace by more than a half this year. This year, there are eleven retailers with more than 2 million square feet of Retail Park floorspace, the same as last year, and twenty seven retailers have more than 1 million square feet (twenty six last year). The thresholds for joining the top 30 and top 40 are 810,000 (850,000 last year) square feet and 470,000 (430,000) square feet respectively. Fifty seven (57) different non-food fascias now occupy more than 200,000 square feet on Retail Parks. Rank Retailer Total Area on Retail Parks (Million Sq. Ft.) % increase in area B & Q % Homebase % Currys % Matalan % Next % Carpetright % Comet % Argos % Halfords % Pets at Home % Development Pipeline 82 schemes thought likely to proceed before the end of 2018 including 3 Leisure Parks, 11 Leisure Schemes, 11 Shopping Parks, 42 Retail Parks and 5 Retail and Leisure Parks are also featured.

Order Form is priced at 495 for delivery within the

Please Return Form and Payment to: Publications

Holmer Green HIGH WYCOMBE Bucks HP15 6RY Requests

made by supplying the following details either: by

and enclose a cheque payable to Trevor Wood

Organisation Address Town Email Telephone Fax

6 Order Form is priced at 495 for delivery within the UK, including postage & packing and Zero Rate VAT. Please Return Form and Payment to: Publications Department Trevor Wood Associates 42 Wycombe Road Holmer Green HIGH WYCOMBE Bucks HP15 6RY Requests for pro-forma invoices or electronic payment may be made by supplying the following details either: by phone: by fax: by I wish to order : 1 / 2 / 3 / 4 / copy(ies) of and enclose a cheque payable to Trevor Wood Associates for Name Job Title Organisation Type of Organisation Address Town Telephone Fax Direct Signature Postcode Date All orders will be despatched within 21 days of receipt of payment.

The Definitive Guide to Retail & Leisure Parks Executive Summary by Trevor Wood

The Definitive Guide to Retail & Leisure Parks 2011 Executive Summary by Trevor Wood Executive Summary Introduction I would like to thank every one who has passed on comments to me in person or written