With the influence of supermarkets and internet retailing likely to grow, we think that a downward trend in real high street shop rents is possible over the long run, with real rents falling by 1% to 1.5%p.a. However, by contrast, if planning rules were changed to make it easier for obsolete shops to be converted to housing, this may be enough for real rents on the remaining shops to remain broadly flat. This would support investor interest and prevent the eyesore that is empty shops.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to gain:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services