The figures, from property consultant Donaldsons, show what is described as a 'relentless increase' in void rates. These refer to periods when a new tenant is not found quickly enough for a site made vacant by lease termination or default on a lease.
'In the years since the 1990s recession, void rates averaged 3.1 per cent of portfolio income per year,' Donaldsons reported. 'It is voids resulting from defaults rather than lease terminations that are probably the more disconcerting for landlords, in that they will not have been allowed for.'
Demand for out-of-town retail space remains strong, despite the Government's pro-high street planning policy, said Donaldsons. The figures show that more than 6 million sq ft (557,420 sq m) of major out-of-town retail warehouse space is in the pipeline.
Strong demand remains from operators such as Habitat, Wickes, Blacks and Evans Cycles. Danish retailer Ilva has large space requirements and speculation continues over future entrants from Europe.
Donaldsons partner Patrick Heaps said: 'Owners and developers are adopting a more innovative approach and much of the pipeline is being provided by historic consents, old food stores, regeneration and planning gain, rather than by straightforward greenfield development.'
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