Retail and High-Street Investment

Retail has been through a hard structural change, but it is not one story. Understanding the risks and the pockets of strength is key for a landlord.

The structural shift

Online shopping reshaped retail, hitting some high streets and shopping centres hard, with higher vacancy and downward pressure on rents in weaker locations. Company voluntary arrangements (CVAs) and insolvencies among retailers have hit landlords directly. See tenant insolvency.

Where retail still works

Convenience and local retail, retail warehousing and well-located units anchored by strong operators have proved more resilient. Turnover rents, where rent is linked to the tenant's sales, are common in stronger schemes and align landlord and tenant.

Rates and reliefs

Retail carries a heavy business rates burden, though the 2026 system brought in permanently lower retail, hospitality and leisure multipliers for eligible properties below the high-value threshold. See RHL relief.

What it means for buyers

Retail can offer high yields for the risk, but pricing must reflect vacancy risk, covenant strength and the cost of re-letting or repurposing. Active asset management, and sometimes a change of use, is often what unlocks value. Model conservatively.

Is retail property a good investment?

It varies. Weaker high streets and shopping centres face vacancy and CVAs, but convenience and retail warehousing have been more resilient.

Do retail landlords get rates relief?

Eligible retail, hospitality and leisure property below 500,000 rateable value benefits from the lower RHL multipliers from 2026.