Data application and sharing can drive new leasing model for UK shops

11 05 20 Retail research

A Colliers survey of the owners of more than 120m sq ft of UK retail property has shown that 79 per cent believe the COVID-19 pandemic will bring permanent changes to how retail property is leased and the terms on which it is occupied. 


Changes will be driven by an advanced use of data but landlords face challenges in terms of accessing the right data sets and must be willing to share this information with retailers if both sides are to benefit.

The survey looked to establish how owners had adapted to the lockdown and how their strategy had changed in the face of the pandemic’s impact on the businesses occupying their assets.

Matthew Thompson, Head of Retail Strategy at Colliers International commented: “The insights from this survey demonstrate that the relationship between the landlords and occupiers of retail property is changing irrevocably. The challenge now for both sides of the equation is who can respond in a way that can sustain a contractual relationship which is viable for all parties”.

An increased use of data regarding footfall, trading turnover and how physical shops help to generate online sales are set to become new key metrics which influence the pricing of leases.

More than 40 per cent of landlords canvassed said that in future they are more likely to consider these factors when determining an asking rent.

Matthew Thompson comments: “Owners are under pressure to deliver high quality, high quantity footfall and brand prominence for their occupiers – and crucially, must be able to prove that their strategies are delivering.

“In this context, it’s clear that we’re going to move away from the old model of how shops have been rented out. In an environment that can integrate masses of relevant datasets, more precision can be brought to the pricing process and this will benefit both landlords and retailers.”

However, at present, the survey shows that many landlords are not yet in a position to apply data in to create a new leasing methodology.

Thompson comments: “Of the owners surveyed, around two thirds do not have access to the data which would enable them to measure who is visiting their properties; where these shoppers come from or the nature of their visits to shopping environments. Even with the right data in place, close to 40% said they would still not be prepared to share these insights with occupiers in return for sales data.

“This unwillingness to share data between stakeholders needs to be resolved if a new model for retail property leasing is to emerge from the devastation of the pandemic.”

CLICK HERE TO REQUEST A FULL VERSION OF THE REPORT

To learn more about our retail sector expertise, please click here


Related Experts

Matthew Thompson

Head of Retail Strategy

London - West End

Matt leads the Retail Strategy service at Colliers - specialists in data analytics, consumer insight and real estate strategy. Matt  delivers bespoke consultancy solutions for landlords, investors and retail and leisure operators across the UK and EMEA regions.

With over a decade of analytics expertise, working at some of the UK’s best known retailers, Matt has a deep understanding of big data analytics & strategy in the Retail sector. Frequently utilising unique data sets and modelling techniques, supporting the delivery of innovative research into occupier affordability and shopper behaviour analytics.

The latest innovation follows a partnership with a tech start-up, to launch a location Insights Platform that is unique to Colliers. The team now harness mobile data from over 80 sources to provide shopper profile & behavioural data anywhere, anytime.

View expert

Hannah Zitren

PR Manager

London - West End

Currently on maternity leave.

As PR manger in the UK, I am responsible for media relations and generating coverage in top tier media. I work across a range of Colliers’ UK & Pan-EMEA business lines (residential; licensed and leisure; planning; hotels; retail; healthcare and automotive) advising on their strategic and tactical PR needs.

My role includes:

·         Developing and executing PR plans for the various business lines to help promote their key messages across all aspects of the media - print, broadcast and social.

·          Media evaluation and reporting objectives, targets and successes across the business.

·         Reputation management and crisis management.

·         Media training.

·         Media engagement: setting up meetings with top tier media and various internal spokespeople to continuously expand and build a presence with property and vertical media network.

·         Consistently delivering service excellence, meeting with business heads of a regular basis and trying to influence the research as much as possible to ensure our content has a strong enough news hook.

·         Key campaigns that I work on include MIPIM; MAPIC; REVO; Midsummer Retail Report; IHIF; Cities of Influence in addition to a host of all alternative property sector research reports.

View expert