Footfall is increasing and vacancy rates declining as retail warehouses find their place in the multi-channel retailing sphere
Retail warehouses may be finally finding their place in the multi-channel retailing environment, with both footfall on the rise and vacancy rates declining.
Low fuel prices, the growing popularity of click and collect, and greater occupier diversity are all driving rising shopper numbers, according to research from Colliers International in its Heading out of town report.
The agent said that while post-internet retail investment is a risky area, retail warehousing is in a good place to serve the multi-channel customer.
Returns for the sector have often lagged other areas of retail. At 14.5% in 2014, they declined to 6.9% the year after, well below the 15% delivered by high street shops.
However, Colliers has forecast future returns to be 5.2% on average each year between 2017 and 2020, the highest of any retail market, with rental growth in the coming years set to increase and driving stronger returns in the sector.
