London Surveyors See 70% Drop in Retail Space Demand

  • 70% of chartered surveyors in London report a notable slump in demand for retail space
  • RICS research shows demand at its lowest since 2008
  • 46% saw an increase in retail vacancies
  • Over a third reported increased use of Company Voluntary Agreements (CVAs)
  • Two-thirds predict more retailers will include CVAs in contracts moving forward
  • Retail challenges evident, but industrial/logistic space demand continues to rise

New research from the Royal Institution of Chartered Surveyors (RICS) reveals a significant drop in demand for retail space, particularly in London, following recent store closures by Poundworld and M&S. The report indicates that demand is at its lowest since 2008, with 46% of surveyed chartered surveyors noting an increase in vacancies. Over a third expect more retailers to include Company Voluntary Agreements (CVAs) in contracts going forward. Despite this, industrial/logistic space demand remains strong.

Factuality Level: 8
Factuality Justification: The article provides relevant information about the current state of the retail market in London based on research by the Royal Institution of Chartered Surveyors (RICS). It includes statistics and quotes from an expert source. However, it could provide more context or background information on the factors contributing to the slump in demand for retail space and the impact on the overall economy.
Noise Level: 4
Noise Justification: The article provides relevant information about the current state of the retail market and its challenges, as well as insights into the trends in demand for industrial spaces. It also includes expert opinions from RICS chief economist Simon Rubinsohn. However, it could benefit from more analysis or discussion on potential solutions or long-term implications of these trends.
Financial Relevance: Yes
Financial Markets Impacted: Retail and industrial real estate markets
Financial Rating Justification: The article discusses the impact of retail closures on demand for retail space and its effect on financial markets, as well as the increase in Company Voluntary Agreements (CVAs) which can affect companies’ financial performance. It also mentions the ongoing strength of demand for industrial space, affecting real estate prices.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no mention of an extreme event in the last 48 hours.

Reported publicly: www.retailsector.co.uk