Assessing the impact of Covid on commercial properties
Covid-19 has had a major impact on commercial properties in town centres, but many of the trends affecting asset performance were already established well before the virus.
This has made it essential for local authorities to assess the impact on their towns, residents, and commercial partners, to inform their future strategies. It is crucial to understand current and future consumer behaviour, how occupiers and landlords are adapting, and the role that physical commercial space can play in establishing thriving, sustainable communities in the post-Covid world.
Pragma is the leading specialist advisor in retail property and commercial spaces in the UK. We have worked on many public sector engagements, as well as supporting leading UK asset managers, investors, and brands.
There are four key questions we can help you answer:
1. Covid Analysis – what is the impact of Covid on our assets?
We are currently assessing the potential impact of Covid on the retail and leisure offer for a range of town centres in the UK, identifying which physical locations and areas of the market are most in need of support, and working with local authority teams to determine the most appropriate interventions. As well as our commercial expertise, we are utilising inputs from local authority Economic Impact Assessments to make the most efficient use of available data.
2. Rent Sustainability Analysis – what level of rents are sustainable?
Utilising our bespoke individual models of 350 of the UK’s top commercial occupiers, we are assessing the sales performance and profitability of retail and leisure brands across the UK. Determining the sustainability of current and target rents provides valuable strategic insight to support local authorities on projects ranging from due diligence for potential purchases to city and town planning retail strategies
3. Retail Strategy – what is the appropriate strategy for our region?
We have worked with a range of authorities across the UK to assess the future strategy for town and city centres, identifying the role retail can play in supporting regeneration and how retail needs to be supported. This has covered a full range of destinations including regional cities, industrial towns, London town centres, small towns in the shadow of larger destinations, and large housing developments
4. Alternative uses – how can commercial space be re-purposed?
Alongside retail strategy, we have assessed the potential for other end-uses that are required to better serve the needs of local residents. This has included:
Office space – assessment of supply and demand and optimal format of space
Leisure – appropriate scale, format and location of offer
Public realm – implications of proposed improvements on consumer perceptions, operator investment and occupier performance
We would be delighted to share with you more detailed insights from our work, and how we are helping local authorities with their immediate and long-term planning requirements.
Simply email me for more information.
Best Regards,
Sam Fox
Associate Director,
Pragma Consulting