1. shopping

The
Definitive
Guide to
Retail
& Leisure
Parks
2014
Executive Summary
By Trevor Wood
Executive Summary
The Definitive Guide to Retail & Leisure Parks 2014
Introduction
I would like to thank every one who has written
to us or passed on their comments in person.
It is pleasing to be told our reviews are indispensable,
warmly welcomed and widely quoted throughout
the retail and property industries. We have reviewed
even more schemes and extended many analyses
as a result of continuous research by my colleagues
at Trevor Wood Associates so this year’s review
is larger than ever. With 20 pages more than the
previous edition it is more than four times the size
of our first review.
Following discussions with over one hundred of
our database clients and review subscribers, we
have updated and extended the new national and
regional analyses for investment managers, agents,
tenants and direct property owners.
A considerable amount of informed comment within
the review is always supplied by owners, managers,
tenants and agents or derived from our research.
We would like to thank the hundreds of people
within the industry who continue to help us make
our reviews as useful as possible.
These people kindly responded to letters, emails,
questionnaires and telephone calls. Your invaluable
help continues to make our reviews unique and
as useful as possible to everyone in the industry.
We would also like to thank our ever growing band
of database clients. More than one hundred clients
regularly pass on updated market information
throughout the year to Trevor Wood Associates
- this makes our task that much easier!
Now this review has been “put to bed”, we will
begin the task of analysing the latest market
data to publish an updated shopping centre
hierarchy for our companion review, Going
Shopping 2015 - The Definitive Guide to
Shopping Centres, which you may find of interest.
Further details can be found on our website
or you may wish to contact us for details!
The Definitive Guide to Retail & Leisure
Parks 2014 contains 364 pages of information
and copies of the full review are available for
£525 from the address overleaf. The report
contains reviews and detailed listings not only
of those schemes currently trading but also
those proposed to open by 2020.
Detailed listings for each scheme include
location, scheme name, GIA, tenants, scheme type,
nearby foodstores, other nearby developments,
planning permission, owners / investment managers
and letting agents. For proposed schemes we also
show planning status, developer and year open.
Recent lettings are detailed together with recent
investment transactions, current and proposed
developments together with numerous league
tables and photographs.
I sincerely hope you find the information contained
within this review of practical use and interest.
My colleagues at Trevor Wood Associates and I
welcome any comments you may have that could
help to make the 2015 review even better and
we look forward to receiving periodic updates
regarding any changes that may take place.
Trevor Wood
Senior Partner
Trevor Wood Associates
Established Schemes
Our research identified 1,525 established schemes, that is to say they are trading or in the course of construction.
These include 101 Leisure Parks, 107 Leisure schemes, 878 Retail Parks, 84 Shopping Parks, 31 Retail and Leisure Parks
and 295 Retail Warehousing developments. The regional location of the established schemes is as follows: Scheme Type
Leisure Park
Leisure scheme
Retail and Leisure Park
Retail Park
Retail Warehousing development
Shopping and Leisure Centre
Shopping Park
Total
Top 10 Retail Parks
Rank
1
2
3
4
5
6
7
8
9
10
EA
EM
N
NI
NW
SC
SE
SW
WA
WM
YH
UK
3
7
9
11
37
7
66
14
6
4
1
50
15
4
4
1
40
7
2
56
4
104
4
80
4
60
14
10
10
85
43
3
13
178
9
5
2
86
18
2
5
127
27
30
7
216
95
16
18
409
9
7
3
74
26
2
7
128
4
7
2
59
13
1
9
95
7
11
2
78
27
3
13
141
9
11
3
87
30
2
5
147
101
107
31
878
295
29
84
1,525
For a listing of the top 100 please see the full review
Scheme
Middlebrook Retail & Leisure Park
Castlepoint
Clifton Moor Centre (Phases 1 - 4)
Parkgate Shopping
The Brewery
Fort Kinnaird
New Mersey Shopping Park
Glasgow Fort Shopping Park
Giltbrook Retail Park
Fosse Shopping Park
Location
Bolton - Horwich
Bournemouth - Charminster
York - Clifton Moor
Rotherham
Romford
Edinburgh - Newcraighall
Liverpool - Speke
Glasgow - Easterhouse
Nottingham - Eastwood
Leicester - Narborough Road
GIA Sq. Ft.
646,661
645,000
587,091
568,985
531,514
506,000
483,268
440,000
420,000
416,536
Year Open
1998
2003
1988
1987
2001
1989
1985
2004
2000
1989
Region
North West
South West
Yorkshire & Humberside
Yorkshire & Humberside
South East
Scotland
North West
Scotland
East Midlands
East Midlands
Top 10 Retail Warehouse Clusters For a listing of the top 100 please see the full review
Rank
1
2
3
4
5
6
7
8
9
10
Cluster Name
Westwood Road
Lakeside
Cribbs Causeway
Newcraighall
Braehead
Tritton Road
Monks Cross
WestQuay
Sealand Road
Parkgate
Copyright © 2014 Trevor Wood Associates Location
Broadstairs
Grays - Thurrock
Bristol - Cribbs Causeway
Edinburgh - Newcraighall
Renfrew - Braehead
Lincoln - Tritton Road
York - Huntington
Southampton
Chester - Sealand Road
Rotherham
GIA Sq. Ft.
1,111,538
1,015,854
975,133
947,467
946,112
917,483
890,624
875,077
811,374
810,205
Region
South East
South East
South West
Scotland
Scotland
East Midlands
Yorkshire & Humberside
South East
North West
Yorkshire & Humberside
Cover Image - Deepdale Shopping Park, Preston
The Definitive Guide to Retail & Leisure Parks 2014
Top 5 Leisure Schemes For a listing of the top 50 please see the full review
Rank
1
2
3
4
5
Scheme
Location
The O2 Entertainment District
New Dock
Union Square
Westwood Cross
Swan Centre
London - Greenwich
Leeds
Aberdeen
Broadstairs
Eastleigh
GIA Sq. Ft.
Year Open
600,000
555,000
550,000
475,000
445,000
2007
2006
2009
2005
1989
Region
South East
Yorkshire & Humberside
Scotland
South East
South East
Leisure Facilities
31 Retail Parks have Cinemas, there are 23
Bowling Alleys and 90 Health & Fitness Centres.
88 Leisure Parks have Cinemas, there are 58
Bowling Alleys and 44 Health & Fitness Centres.
20 Shopping and Leisure Centres incorporate
Cinemas and 10 include Bowling Alleys while
20 have Health & Fitness Centres.
55 Leisure Schemes have Cinemas, there are 19
Bowling Alleys and 53 Health & Fitness Centres.
Night-clubs can be found on 51 schemes and 84
incorporate a Hotel, while 4 include theatres.
Top 5 Shopping Parks For a listing of the top 20 and the top 20 Retail & Leisure Parks please see the full review
Rank
1
2
3
4
5
Scheme
Location
Castlepoint
Fort Kinnaird
New Mersey Shopping Park
Glasgow Fort Shopping Park
Fosse Shopping Park
Bournemouth - Charminster
Edinburgh - Newcraighall
Liverpool - Speke
Glasgow - Easterhouse
Leicester - Narborough Road
GIA Sq. Ft.
Year Open
645,000
506,000
483,268
440,000
416,536
2003
1989
1985
2004
1989
Region
South West
Scotland
North West
Scotland
East Midlands
Reflecting recent market conditions, there have
only been minor changes in the spread of rents
across the rental bands during 2013.
Leisure Park peak rents ranged from £12.00
per sq. ft. to £42.50. Most Retail Warehousing
developments recorded rents below £15.00,
with rents ranging from £6.00 to £41.50 per sq. ft.
Highest rent achieved
Range (per Sq. Ft.)
2013
%
2012
%
10
7
13
9
10
27
21
3
10
6
13
8
10
27
22
4
Over £35.00
£30.00 - £34.99
£25.00 - £29.99
£22.50 - £24.99
£20.00 - £22.49
£15.00 - £19.99
£10.00 - £14.99
£5.00 - £9.99
Highest rent achieved per Sq. Ft.
Peak Rents for Retail Parks For a detailed breakdown since 2004 please see the full review
£100
£80
£60
£40
£20
£0
0
100
200
300
400
500
600
700
800
900
1000
Number of Retail Parks
Top 10 Retail Park Rents For a listing of the top 100 since 2009 please see the full review
2013
Litttle has changed over the year and there
continues to be a wide variation in historic peak
rents from £8.00 to £105.00 with the majority below
£20.00, as can be seen above. 10% of Retail Parks
have peak rents above £35.00 per sq. ft. and the
entry level for the Top 100 Retail Park Rents has
risen marginally to £35.00 with two new entries.
You should note that 30% of the historic peak
headline rents were set by occupiers who
subsequently went into administration or entered
into a CVA with some still trading today whilst
others, such as Comet, have gone forever.
Rank
1
2
3
4
5
6
7
8
9=
9=
9=
9=
9=
2012
1
2
3
4
5
6
7
8
9=
15
16
9=
9=
Highest Rent
per Sq. Ft.
£105.00
£75.00
£65.00
£63.75
£62.50
£62.00
£60.00
£57.90
£55.00
£55.00
£55.00
£55.00
£55.00
Scheme
Location
GIA
Sq. Ft.
Fosse Shopping Park
Brookfield Retail Park
Colney Fields Shopping Park
Birstall Shopping Park
Castlepoint
Fforest-fach Parc
The Fort Shopping Park
Teesside Shopping Park
Fort Kinnaird
Glasgow Fort Shopping Park
Ladymead Retail Park
New Mersey Shopping Park
Brent South Shopping Park
Leicester - Narborough Road
Cheshunt
St Albans - London Colney
Leeds - Birstall
Bournemouth - Charminster
Swansea - Fforest-fach
Birmingham
Stockton-on-Tees - Thornaby
Edinburgh - Newcraighall
Glasgow - Easterhouse
Guildford
Liverpool - Speke
London - Hendon
416,536
90,000
58,212
163,730
645,000
134,808
283,988
350,606
506,000
440,000
125,000
483,268
94,417
Top 5 Letting Agents - Retail Warehousing For a listing of the top 40 since 2009 please see the full review
Rank
2013
Rank
2012
1
1
2
2
3
3
4
4
5
5
Letting Agent
–
–
–
–
–
Area 2013 Million Sq. Ft.
2013
Instructions
Wilkinson Williams
20.73
142
Morgan Williams
20.04
168
Savills
19.80
182
Cushman & Wakefield
12.96
96
Harvey Spack Field
11.72
105
For the fourth year running, we ranked Wilkinson Williams as the leading retail
warehousing letting agent with instructions totalling over twenty million square feet.
Twenty six agents had instructions in excess of one million square feet, one more
than last year, and thirty nine agents had in excess of half a million square feet
floorspace, three less than in 2012. Four of the top five agents in Northern Ireland
do not feature in the national top ten, nor do three of the top five in Scotland and
two of the top five in Wales.
Copyright © 2014 Trevor Wood Associates
The Definitive Guide to Retail & Leisure Parks 2014
Vacant or Available space For a more detailed analysis since 2004, including a regional breakdown, please see the full review
With little development taking place, “Second-hand” supply has fuelled the growth of a number of expanding retailers. Continuing administrations,
receiverships and declining confidence among some retailers resulted in a continuing supply of space over the past few years but, with few new developments
being built, a significant proportion of this space has been occupied by a number of retailers. Since the beginning of 2013, tenants such as Dreams, HMV
and Republic have either withdrawn from the UK, been in administration or entered a CVA. With downsizing by others such as Homebase, PC World and Staples,
the combined impact potentially increased the amount available at the end of 2013 by over two million sq. ft. of floorspace. By the end of 2013 many retailers had
taken much of this space including Dynamic Comparison Goods retailers such as B & M, Dunelm, Home Bargains, Next, Pets at Home, Poundstretcher,
TK Maxx and Wren Living. These eight retailers occupied almost 3.0 million sq. ft. of retail warehousing floorspace during the past twelve months.
This helped to significantly reduce vacancy levels with the retail warehousing
vacancy rate falling to 8.8% with the largest annual fall recorded since 2010
and the rate is the lowest since end-2007. The Open A1 vacancy rate was
6.9%, compared to 7.5% in 2012, with Open Non Food schemes falling to 9.5%
from 10.1% and other schemes falling from 11.8% to 10.1% in 2013.
Retail Warehousing Vacancy rate 2009 - 2013
By broad planning consent
13
We look at the Retail Parks and warehouses market from a different perspective.
Trevor Wood Associates have the most comprehensive retail warehousing
database in the United Kingdom. With refurbishment and extensions curtailed in
recent years, “Second-hand” retail warehousing coming on to the market is an
important supply of space. The take-up by expanding retailers highlighted in the
review shows the continuing demand for well located, good quality units.
A significant proportion of the retail warehousing floorspace vacated over the past
few years by failed retailers has been successfully re-let while a sizeable number
of units are under offer. As part of their business strategy, Currys and PC World
continue to relocate to combined units while other large space users, such as
Homebase, Staples and Wickes, are downsizing by making units available via
sub-lets, relocating and shedding former units or closing down marginal stores.
12
11
10
9
8
7
6
5
Many retailers that may be considered as “discount” or “budget” retailers were
highlighted as increasing their presence in our other review “Going Shopping
2013 – The Definitive Guide to Shopping Centres” and a number of these
retailers have increased their presence in not only the leading shopping centres
but also on retail parks. These retailers include H & M, Poundland and Sports Direct
and other expanding retail park retailers in this category include B & M, Dunelm,
Home Bargains, Matalan, Poundworld and The Range.
4
3
2
1
While compiling the review we became aware of a significant number of units
under offer and are of the opinion that vacancy rates will fall further during 2014.
0
Q2
2009
Q4
2009
Key
Q2
2010
Q4
2010
Q2
2011
Q4
2011
Q2
2012
Q4
2012
Q2
2013
Q4
2013
Our research shows the total retail warehouse market grew marginally to
179.90 million sq. ft. in 2013 from 178.70 million sq. ft. in 2012. The proportion
taken by Comparison Goods retailers (excluding DIY) has risen to an all time high
of 53.2% in 2012 compared to 51.5% in 2012.
Vacancy Rate - All Retail Warehousing
Vacancy Rate - Open A1 schemes
Vacancy Rate - Open Non Food schemes
Within the total market, floorspace on Retail Parks grew to 112.17 million
sq. ft. in 2013 from 108.92 million sq. ft. in 2012. Excluding DIY retailers, the
share of Retail Parks’ floorspace in 2013 occupied by Comparison Goods
retailers rose to 59.1% from 57.7% in 2012.
Vacancy Rate - Bulky Goods or Restricted schemes
Top 5 Managing Agents - Retail Warehousing For a listing of the top 20 since 2009 please see the full review
Rank
2013
Rank
2012
Managing Agent
1
1
2
3
3
2
4
6
– Savills
5 Jones Lang LaSalle
6 Workman
5 CBRE
5
4
6 Capita
Area 2013 Million Sq. Ft.
2013
Instructions
17.70
150
14.77
164
14.27
157
8.72
98
7.48
87
For the fifth year, Savills are the leading retail warehousing managing agent
while Jones Lang LaSalle overtake Workman and move in to second position
with CBRE rising to fourth.
Sixteen agents had instructions in excess of one million square feet while
nineteen had in excess of half a million square feet. Three leading agents in
Northern Ireland do not feature in the national top ten, nor does one from
each of the North West and Wales.
Development Pipeline
85 schemes thought likely to proceed before the end of 2020, including 3 Leisure Parks, 13 Leisure Schemes, 7 Shopping Parks, 45 Retail Parks,
5 Retail and Leisure Parks, 6 Retail Warehousing developments and 6 Shopping and Leisure Centres are also featured.
Copyright © 2014 Trevor Wood Associates
Executive Summary
The Definitive Guide to Retail & Leisure Parks 2014
Top 5 Investment Managers - Retail Parks For a listing of the top 20 since 2004 please see the full review
For the ninth year running, British Land are the leading investment
manager of Retail Parks in the UK. Their closest challengers are now
Standard Life Investments and M & G Real Estate.
Rank
2013 2012
Fourteen investment managers covered more than 2 million square feet while
thirty two investment managers cover more than 1 million square feet
of retail parks. In Northern Ireland four of the top five do not feature in the
national rankings while in the North West there are three not featured with
one each in Scotland and Wales.
Owner / Investment Manager
-
British Land
Total Area Retail Parks
(Million Sq. Ft.)
2013
2012
1
1
8.72
8.69
2
3
5 Standard Life Investments
4.86
4.81
3
5
5 M & G Real Estate
4.84
4.24
4
4
4.38
4.34
5
2
4.34
4.88
-
Hammerson
6 Aviva Investors
Top 5 Direct Property Owners - Retail Parks For a listing of the top 20 please see the full review
Rank
2013
Rank
2012
Direct Property Owner
Area 2013 Million Sq. Ft
Area 2012 Million Sq. Ft
1
2
5
2
1
6
British Land
6.64
3.39
Hammerson
4.32
3
4
4.28
5
Land Securities
3.05
3.01
4
5
5
5
Henderson UK Retail Warehouse Fund
2.74
2.62
6
5
The Crown Estate
2.66
2.30
We updated our analysis of direct property
ownership by funds or property companies,
showing a number of changes in the past year.
Most investment managers will not feature but the
funds they manage will. Similarly, many property
companies who part own and manage Retail
Parks on behalf of minority investors will see
floorspace reduced to show direct ownership.
Top 5 Investment Managers - Retail Warehousing For a listing of the top 20 since 2004 please see the full review
Widening the analysis to include free-standing retail warehouse units,
such as B & Q and IKEA always changes the picture. For the ninth year,
British Land lead with 10.5 million square feet under active management
while CBRE Global Investors and M & G Real Estate both move up a place.
Rank
2013 2012
The top ten now look after 32.5% of the overall 179.9 million square feet of
retail warehousing floorspace and the top twenty look after 48.5%. Four of
the top five in Northern Ireland do not feature in the national top twenty, nor
do two of the leaders in the North West and one each in four other regions.
1
1
2
3
3
4
4
2
5
6
Owner / Investment Manager
- British Land
5 CBRE Global Investors
5 M & G Real Estate
6 Aviva Investors
5 Threadneedle Property Investments
Total Retail Warehousing
(Million Sq. Ft.)
2013
2012
10.51
10.64
6.61
6.77
6.21
5.79
5.94
6.90
5.75
5.11
Top 5 Direct Property Owners - Retail Warehousing For a listing of the top 20 please see the full review
Rank
2013
Rank
2012
Direct Property Owner
Area 2013 Million Sq. Ft
Area 2012 Million Sq. Ft
1
1
-
2
2
-
British Land
7.87
5.01
Hammerson
4.61
3
3
-
4.50
IKEA
4.12
4.12
4
5
5
6
5
Land Securities
3.07
3.06
5
B & Q Properties
3.00
2.98
We updated our analysis of direct property
ownership by funds or property companies,
showing a number of changes in the past year.
Most investment managers will not feature but the
funds they manage will. Similarly, many property
companies who part own and manage Retail
Warehousing on behalf of minority investors will
see floorspace reduced to show direct ownership.
Top 10 Retail Park Tenants For a listing of the top 50 since 2004 please see the full review
Rank
2013
2012
Retailer
Total Area on Retail Parks
(Million Sq. Ft.)
% increase
in area
2013
2012
1
1
-
B&Q
8.13
7.64
7%
2
2
-
Homebase
5.15
5.22
-1%
3
3
-
Currys
5.01
4.87
3%
4
4
-
Matalan
3.85
3.85
0%
5
5
-
Next
3.30
3.10
6%
6
6
-
Carpetright
2.81
2.84
-1%
7
7
-
Argos
2.80
2.71
4%
8
9
5
Pets at Home
2.60
2.34
11%
9
10
5
TK Maxx
2.45
2.27
8%
10
8
6
Halfords
2.41
2.39
1%
Over 900 different tenants trade from Retail and
Leisure developments. The tenants most likely
to be found on Leisure developments, who are
present on more than 50 schemes, are Cineworld,
Frankie & Benny’s, McDonalds, Nando’s and
Pizza Hut. Non-food tenants most often found
on Retail Parks are Argos, Carpetright, Currys,
Halfords, Next and Pets at Home.
For the first time in years, many tenants have
increased their retail park floorspace over the past
year. This involved forty one of the top fifty tenants
- although it should be pointed out that eleven of
these were only marginal increases.
There are thirteen retailers with more than 2 million square feet of Retail Park floorspace and twenty four retailers have more than 1 million square feet while sixty
two different non-food fascias occupy more than 200,000 square feet on Retail Parks.
B & M are ranked in the top five in both Yorkshire & Humberside and the North but not in the national top ten, as are The Range in East Anglia and
Marks & Spencer in both Northern Ireland and the South West.
Copyright © 2014 Trevor Wood Associates
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The Definitive Guide to Retail & Leisure Parks 2014
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