This time last year, when only essential shops had been allowed to open for much of 2020 and online shopping sales had rocketed to new heights, it seemed like a natural assumption to conclude that the days of high street retail were numbered.

However, much against the odds, 2021 has seen the resurgence of retail property. According to the ONS retail sales volumes increased for the first time in five months in October, rising by 0.8% to a level that was 5.8% higher than their pre-pandemic February 2020 levels.

At the same time, the proportion of retail sales online fell to 27.3% in October 2021, its lowest proportion since March 2020. Following lockdown, people are returning to shops and retailers are returning to physical premises to meet the demand. At Alternative Bridging Corporation, we recently completed a loan on a retail property that the agent said was in high demand, with a long list of potential buyers.

One area of particular demand that we have noted in the last year is the continuing strength of roadside retail – roadside premises with ample parking and potentially even drive-through facilities.

Roadside retail has traditionally been popular with food outlets and convenience stores, but it’s broadening its appeal with brands like Metro Bank, Debenhams and Benefit Cosmetics being just three businesses that have embraced this model, while there are other examples of mobile phone shops, travel agents and opticians moving into this area.

The convenience of roadside retail has always been appealing to shoppers and it lends itself perfectly to benefit from the rise of click and collect as well as the completion of transactions with minimal interaction with other people – which is likely to be a consideration for people well beyond this pandemic.

In addition, the growing use of electric cars presents future opportunities for roadside retail as the installation charging points at roadside sites will create a captive audience for the shops and services at that location. And, in the UK, the limited number of sites that offer good access and visibility from the road means that demand is usually high and this is putting upward pressure on rental prices.

So, while retail property looked to be on an unending downward spiral this time last year, the last 12 months have delivered new opportunities for investors and retailers to purchase appreciating assets. Unfortunately, many lenders have been slow to appreciate this and it can still be difficult to secure finance on retail property with some providers. However, a specialist property lender like Alternative Bridging Corporation has the experience and understanding to recognise a good commercial opportunity and we have continued to lend on good retail deals throughout the pandemic.

The resurgence of retail property is good news for investors and it’s good news for those intermediaries who partner with the right lenders. There’s an opportunity out there. You just need to know where to look.

Click here to read the article on Bridging & Commercial.