Number of empty shops on the rise as retailers feel pressure
Empty shop units are becoming increasingly visible as pressure on the retail sector continues, according to property surveyors.
The sector was the only area to post a decline in occupier demand in the second quarter, RICS' Commercial Property Market survey found.
The industrial sector meanwhile attracted solid demand from occupiers and investors, while office demand held broadly steady.
RICS said empty retail units were becoming increasingly visible and cited a 'lack of good quality industrial/logistic opportunities'.
David Castles of property management company Ian Philp Glasgow Ltd said: 'Secondary retail has seen a significant downturn with the reduction in consumer spending, increased base costs and the continual growth of internet shopping.
'This sector will be required to reinvent itself to generate future growth.'
Across the UK, just over a third of respondents reported seeing an increase in the use of Company Voluntary Arrangements (CVAs) over the past year.
CVAs are used by retailers to pay creditors over a fixed period to allow them to continue trading.
Simon Rubinsohn, RICS chief economist said: 'The challenges being faced by retail not surprisingly come through strongly in the latest set of results, but the counterpoint to this is the ongoing strength of demand for good quality, well located industrial/logistic sites.
'Indeed, the lack of availability of stock in the industrial segment of the market and the generally sluggish development pipeline, is pointing towards further healthy gains in pricing.'