Bidwells' research shows that consumers are leading the recovery with household expenditure growing at levels above the overall economy, although this strength is yet to translate to growth in a market of tough trading conditions, as recent results from both M&S and Tesco have illustrated.
Research findings show that while take-up is down, this reflects a lack of quality stock, especially prime mid-sized High Street pitch. Take-up slowed across most markets in the Eastern region in the first half of 2014, with just under 700,000 sq ft of space acquired, compared to 822,000 sq ft in the previous six months.
High Street retail supply in Cambridge remains tight with only 83,200 sq ft of available units on the market. Lack of available stock holds back activity, with only 9,400 sq ft of lettings completed in the first six months of 2014, the lowest level of activity recorded since 2002.
Out of town retail supply lettings have been restricted by a lack of supply, the overall availability rate remains at 1%, which represents the lowest level of availability in over 15 years.
"Demand for units of 1,500-4,000 sq ft in the main Bidwells market is almost three times the available supply, and this does not take account of the pitch of the available units," said James Lankfer, Head of Retail and Leisure, Bidwells (pictured).
"The supply of out of town retail space is at an all-time low, due to the restrictions of new developments, with the availability rate expected to reduce to 5% or below in the second half of the year. Several larger units account for the lion's share of the supply on the market, but 45% of this was under offer at the end of June. There were fewer than 10 lettings in the first half of the year and the market will get tighter as supply reduces."
"Both in town and out of town markets are looking set for a period of growth over the next few years, assuming that the economy is not derailed from its upward path."
FOCUS: The cinema fights back against online threat
The cinema market is fighting back against the threat from 'film on demand', Blu-ray and DVD with an increased range of offerings from new-style premises.
Although cinema audiences and revenues were marginally down in the calendar year 2013, and the first half of 2014 followed this trend, cinema operators have managed to push up income since 2006, with box office revenues rising by 42.1%, whilst audience numbers have remained relatively stable.
Increased revenues have been achieved on the back of a diversification of shows and new innovations, as well as a range of 'new' events such as live and recorded opera, theatre and ballet screenings.
Digital screening has reduced costs and facilitated growth, now accounting for 98.4% of all screens in the UK, up from 8.2% of the total in 2007. Digital screening has also reduced the costs of launching new or smaller operations on to the market.
The growth in number and scale of multiplex cinemas has given rise to a change in the dynamics of property requirements from operators, with large-scale operators targeting larger sites in out of town or edge of town locations. In contrast, smaller independent operators have tended to focus on town or city-centre schemes based in sites of 5,000-10,000 sq ft. Arts based cinemas have enhanced their offering with fully-licensed bars providing wine and quality food along with a range of seating options.
Many 'arts' cinemas are located in secondary retail or leisure locations, within easy reach of the main high street, allowing operators to negotiate favourable terms as they are expected to bring greater footfall to the area.
"Whilst the past 18 months have been particularly difficult for cinema operators, with both admissions and revenues reducing, the short-term outlook for the sector remains optimistic. Cinemas will continue to look to bolster box office revenues with the introduction of new ideas from their sites. In the longer term the concept of the cinema experience looks set to change. The latest ideas incorporate wider choices of eating, drinking and entertainment, all being contained within cinema venues." Chris January, Partner, Bidwells.
About Bidwells
Established 175 years ago, today Bidwells is one of the UK's leading property consultancies. We employ almost 500 people in 13 offices across England and Scotland and provide a full range of services across the Commercial, Residential and Rural sectors.
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