The latest figures from analysts Springboard reveal that footfall at retail parks increased by 2.62% at the end of July 2017. Apart from a few blips, business in retail parks has been good throughout 2017.
This contrasts with many city centre shopping areas where business has declined. One of the reasons that people favour retail parks is their accessible parking, which is usually free. Good parking facilities also make them convenient for click and collect systems, where goods are ordered online and picked up at a store.
A number of retail parks have changed hands and many property values have risen. The present state of shopping parks contrasts with 2008 when, following the financial crash, tenant demand for retail property declined significantly.
Investors attracted to retail markets can obtain commercial mortgage through specialist brokers at reasonable interest rates. Though many retail parks are owned by one investor, this is not the case with every park.
Many large retailers are happy to sign long-term leases and accept regular index-linked rent reviews. Good rental yields are possible with the right property in a prosperous retail park.
Another advantage of retail parks is that the buildings are often cheaper to maintain than at older town centre shops.
More parks are expected to be built, but planning regulations mean that many local authorities restrict the number of additional retail park developments in their area. The means that the market should not get over saturated and a high demand among tenants should continue.