2020 started with a feeling that retail warehousing, at least in terms of investor interest, had reached a turning point in what has been a fairly negative story in recent years. The arrival of the current pandemic has undoubtedly delayed the recovery amidst questions about retailer and landlord stability.

While the behavioural changes that might remain after lockdown are impossible to predict, the retail warehouse sector has had a slightly better lockdown than other parts of the UK retail hierarchy. More stores have remained open due to selling essential goods, and retailer’s margins have been supported by the business rates holiday and generally forgiving attitudes by landlords towards rent holidays and regearing.

Overall we believe that the fundamentals that were beginning to revive investor interest in the sector in the first few months of 2020 will be rediscovered later on this year, and as the analysis in the occupational section of this reports shows, vacancy rates remain comparatively low, and store openings have continued.

While we do not expect to see a bounce in new leasing activity this year, the fallout of the current crisis may well be less bad than was originally expected, and this combined with the social distancing friendly nature of retail warehouse parks and schemes should support a quicker recovery to normal trading levels than in some other parts of retail.

_{Read the articles within Spotlight: UK Retail Warehousing below.}