Retailers demand smaller units on parks

Retailers are on the hunt for smaller retail warehouses, according to property agent FPD Savills.

The average size of warehouses being sought is now less than 12,000 sq ft (1,115 sq m), continuing the trend in recent years towards smaller warehouse stores.

FPD Savills' latest survey of requirements reveals that almost two thirds of retailers required stores smaller than typical medium-sized units of 18,000 to 80,000 sq ft (1,670 to 7,430 sq m). The survey looked at nearly 10,000 units occupied by more than 50 different retailers.

FPD Savills head of commercial research Mat Oakley said: 'The influx of high street retailers, which are used to trading from smaller stores, and the refinement of brands, has led to this gradual downgrading of requirements.'

With increase in demand for smaller retail warehouses over medium-sized units expected to continue, landlords of retail parks need to look at whether existing units can be sub-divided easily, the survey argues.

Alongside the growing trend for smaller units, the study shows a number of retailers are also seeking large retail warehouses of more than 80,000 sq ft (7,430 sq m).