As part of our Property Futures research we have identified a number of key future trends to lookout for across the property sector over the coming decade. A result of interviews with key industry leaders, extensive internal brainstorming and, of course, research. In a further twist, the trends were tested using an online survey of 140 property investment professionals, providing an insight into the extent to which the wider industry actually agrees with our findings!

This short blog looks at the key conclusions for retail and investor views on our predictions.

Local high streets to complete their transformation to a service-orientated model

Local high streets will become almost entirely services driven. On the assumption that the logistics sector is able to further accommodate the growth of online retail, local high streets will find it increasingly difficult to attract and maintain comparison goods retailers. However, they will see a new breed of services driven or experiential retailer filling the void. This will be in the form of click and collect services, 3D printing cafes similar to the makersCAFE in Shoreditch and other lifestyle or services-driven retailers – such as micro gyms.

Retail parks have the flexibility to manage multichannel operations

Retail parks’ large unit sizes and good car parking give them the flexibility to respond to the internet. Over the next decade we will see these units become 24hr operations, providing round the-clock employment, as they operate as predominantly physical shopping environments during peak shopping hours, whilst also serving local online shopping from the shop-floor during quieter periods. This will necessitate mild internal reconfiguration – for example, wider aisles and a specialist click and collect area.

Shopping centres reliant on localised demand will move towards a more serviced-office style model

With lease lengths shortening, owners of non-destination local shopping centres will begin to operate a more hotelier style system of standardised lease agreements, plug and play retail units and in-house leasing management. Agreed rental prices will be ‘all inclusive’ of service charges and insurance.

Largest shopping centres to see 50% eating, drinking and leisure use

Amongst the large destination shopping centres, the shift to eating and leisure is a long way from over. During the next decade owners will be forced to consider every conceivable food and leisure option as they seek to keep increasingly virtual consumers away from their laptops. Over this time period, these shopping centres will become whole-day destinations with leisure amenities such as theatres, aquariums and health spas, with leisure and food & beverage retailers comprising 40–50% of the total mix.

The Strutt & Parker research team is always keen to discuss our research and debate alternative views. Please view our Property Futures research, or our other blogs. Alternatively, get in touch.