Properties of Retail Commercial in UK Continue Investing to Fall

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Investment into UK shopping centres has decreased by almost 75% in 2008 according to Cushman and Wakefield's latest report. Before the credit crunch took its toll UK retail commercial property was experiencing a boom growth cycle with 2004 being a record year for investment in UK shopping centres. However, the economic downturn has meant a record number of shops and retail commercial property have been left to collect dust in what once were busy high street shopping areas.

Welsh and West Midlands towns seem to be the worst affected by the decline. An increasing number of retailers are going into administration in areas such as Holyhead and Milford Haven in Wales and Chelmsley Wood in the West Midlands and there will be numerous shops and commercial properties left empty due to the downturn in consumer traffic and spending. Milford Haven already has a vacancy rate of 30% and Chelmsley Wood in the West Midlands has 28% of its shops left vacant. Despite these already large vacancy figures Experian predicts that both will see further declines throughout 2009. Similar effects to commercial property occupancy levels are expected to be seen at retail parks where due to the loss of MFI and Land of Leather, as well as other prominent high street brands occupancy levels are expected to drop to around 30%.

News for shopping centres and retail commercial property is not all doom and gloom for the UK however. Plans to carry out a major mixed-use development on Brighton's seafront in Sussex have been restarted by Standard Life Investments after they were put on hold last year due to the adverse market conditions. Plans include significant expansion of the Churchill Square shopping centre as well as other leisure facilities developments. The huge investment and development will transform this particular area of Brighton and hopefully create a stunning new focal point on the seafront.

Towards the end of 2009 UK retail commercial property investment is likely to begin to increase once again especially amongst cash rich buyers. They will have a rich supply of commercial property bargains available to them due to the decreasing values and prices of many real estate properties.