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12 Jun 2019

The Association of Convenience Stores (ACS) and the Home Office have been campaigning to raise awareness of violence and abuse towards retailers to encourage action and change.
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Love to Ride & The ACT

5 Jun 2019

Getting more people on bikes and using their local bike shops is a shared goal of Love to Ride and the ACT so we are doing it together.
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30 May 2019

15 key things to check when building a landing page Read more…

The UK high street retail sector

29 May 2019

A new survey focusing on small retail businesses has revealed a few surprising findings.
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Local Bike Shop Day 2020 save the date

22 May 2019

We are excited to announce that following the success of this year's event we are already busy preparing for next year's big day.
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Local Bike Shop Day 2019 busiest day ever!

16 May 2019

Local Bike Shop Day is the one day a year when independent bike shops across the UK can come together to celebrate their distinctive culture. It's the day for local bike shops to showcase their... Read more…

Ultimate guide to advertising on Facebook

15 May 2019

Are you interested in learning how to run Facebook ads? This is a step-by-step guide of best practices to advertising.
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20-70% correction in retail properties

Posted on in Business News, Cycles News

London skyline 

According to a report published by Fidelity International, UK retail properties could lose up to 70% in value due to rent cuts.

Fidelity said it anticipates that UK retail real estate values will fall by 20% to 70% depending upon the nature and quality of the assets.

This correction is driven in part by, a 10%-40% reduction in rent to make them sustainable and affordable and by, the change in risk profile of the underlying tenants and their future cash flows de-rating the sector equivalent to 10% to 30%.

Data in the report has revealed that from 2015 to October 2018, the value of unlisted UK retail sectors has fallen by 5%, whereas listed retailers during the period have experienced a 17% drop.

Fidelity said:

"Profitability among bricks-and-mortar retailers in the UK has shown a marked deterioration"

This can be reverted if rental costs fall by 10% to 40%. Of course, this would then lead to the significant de-rating for UK retail real estate by anything from 10% to 30%.

This correction would be the largest in UK retail rents and would lead to major repercussions for landlords.

"Retail real estate would transform from a defensive, premium asset class into one of the most volatile elements in any real estate portfolio".

Fidelity, taking the issue wider and globally, said that countries with, "high retail space per capita, weakening consumer spending growth or a structure change to GDP away from consumer-driven growth are at risk of market repricing; with France and Australia being two markets of particular concern".

According to Fidelity, rent is the only key cost, amongst wages and supply costs, that can be reduced.

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