Demand for retail assets has never been stronger, says Christie & Co

Business property adviser Christie & Co’s Retail Insight 2021 report shows that throughout the first half of 2021, sales of convenience stores and petrol filling stations reached the highest levels seen since 2017.

Deals included a mix of independent and corporate sales, which contrasts what the Christie & Co team has experienced over the past 10 years. Corporate ‘churn’ “ramped up” in the first half of the year, with projects including multi-phase divestment programmes with the Co-operative Group and Bestway Retail.

Retirement remained the most prominent driver for independent business sales, with 53% of the instructions resulting from clients seeking retirement, the report finds.

The report reveals that the current volume of businesses available is insufficient to satisfy the “incredible demand” from buyers. It says sellers appear to be holding onto their assets to make the most of the prolonged period of sales growth amid the pandemic and this had made it challenging to bring sufficient properies to the market. This is leading to competitive bidding, premium prices being achieved, and a reduced period from offer acceptance to exchange of contracts.

Most buyers were existing independent retailers, looking to acquire additional high-quality sites and increase exposure to improved trading conditions, and the team have observed an increase in demand for ‘hotspot’ leisure destinations such as national parks and coastal resorts. The report suggests this is most likely due to investors seeking out opportunities to capitalise on holiday trade that is likely to result from the current UK staycation boom.

Steve Rodell, managing director of retail, said: “We really could not have predicted back in March 2020 and throughout the rest of the year where we would be in 2021. We have adapted to working differently which means far more ‘desk work’ and the first half of the year is a consequence of the hard work done in the second hald of 2020 when there were less restrictions on movement.

“It remains to be seen if we can satisfy buyer demand and I would encourage anyone even thinking of selling to get in touch as we have a long list of frustrated buyers across the UK and at all price points.”