The shop vacancy rate fell 14.1% in the first quarter of 2022, which represented only the second period of falling vacancy rates since the same quarter of 2018.
The data from the BRC-LDC Vacancy Monitor showed all locations saw a decrease in vacancies, with Shopping Centre vacancies falling to 19.0%, down from 19.1% in the previous quarter. On the High Street, vacancies decreased to 14.1%, which was down from 14.4%, while Retail Park vacancies decreased to 10.6%, a 0.7 percentage point fall from the fourth quarter of 2021.
“The first quarter of this year saw a large quarterly improvement in shop vacancy rates. The economy had fully reopened, with more city workers back in the office, and more tourists out on the streets. This allowed some businesses to grow and invest in repurposing and reopening empty units, especially in retail parks and high streets,” said Helen Dickinson Chief Executive of the British Retail Consortium.
“Despite this improvement, the overall proportion of empty storefronts remains well above its pre-pandemic levels, especially in the north of England. While many northern regions saw the biggest quarterly improvement, they still have the highest vacancy rates in the country as they were hit harder by the pandemic and have a lower average level of disposable income.”
She added: “Much has changed with the cost of living rising and the conflict in Ukraine damaging consumer confidence. It remains to be seen how the increasing costs and the war in Ukraine will impact on businesses and the vacancy rate in the future. While people’s shopping habits have changed, the need for vibrant communities at the centre of our towns and cities has not. Government should look to reform business rates so that businesses can invest in these areas that need it the most.”
