Bristol and Bath retail property market

The retail property market in Bristol this Spring 2023

Retailer demand remains robust despite the economic headwinds and is currently stronger than usual for the time of year.

We are still seeing plenty of interest from independent retailers and the food & beverage and leisure sectors, with national operators of roadside food & beverage outlets also still active. Several fashion retailers are again showing interest in bricks and mortar, and we are also seeing a revival in demand from the charity sector. 

The main driver of Bristol’s city centre retail market is the uncertainty being created by various redevelopment proposals in the Broadmead shopping area. Of these, the furthest ahead is the redevelopment and repurposing of the 1990s Galleries Shopping Centre. Owners LaSalle are accelerating the project and advising occupiers of scheme’s commencement within two years. 

Hammerson, owner of Cabot Circus, also has redevelopment plans for their ownership of parts of The Horsefair, Broadmead and Merchant Street but are now offering occupiers five-year term certain plus a rolling development break. Other development proposals include blocks owned by AEW that include the former Debenhams and separate plans for the former M&S store. 

Many suburban locations are performing well. Good examples are Clifton Village, where rents have increased in recent years and are now close to parity with the secondary end of Broadmead; and Wapping Wharf, with its thriving offer of independent bars and restaurants.

The retail property market in Bath this Spring 2023

2022 saw a record number of retail lettings, with several units currently under offer, underlining the resilience of Bath’s retail market.

The majority of enquiries are food & beverage-led, driven by the city’s buoyant café culture, and its thriving bars and restaurants. 

However, the city is also attracting new retailers, which is important in maintaining a balanced offer. Demand is coming not only from independent operators, with several unique businesses moving in, but also from a revival in interest from the major national brands, with operators such as Monsoon and Mint Velvet recently agreeing to take space. In addition, Zara is rumoured to be moving into the SouthGate centre. 

Landlords reduced rents in order to avoid vacancies during the pandemic and this has proved highly successful in terms of occupation levels. Indeed, unlike many locations, Bath’s key problem is a lack of available units rather than oversupply. As a result, we are now beginning to see some upward pressure on rental levels, with competitive bidding in some recent instances, and deals being agreed at above the asking rent.

Although high energy bills remain a headwind, retailers should see the benefit of lower business rates from this April.

Read more about the Bristol and Bath Office and Industrial property markets on our latest Carter Jonas Commercial Edge report. 

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