In April 2011, Oddbins, Focus DIY and Officers Club, to name but a few, collapsed into administration. The wave of retailers struggling to survive is not abaiting and many more casualties are on their way.
What does this mean for those commercial property investors who own shops? In short, disaster! Those out there who own freehold high street shops, which were once sought after investments, are struggling to let and sell these vacant units. Retailers are struggling to survive and so are not taking shops and investors, who are aware of this, are totally uninterested in buying vacant properites. The few who may consider buying a vacant shop soon change their mind when they try to borrow money from banks who are still unwilling to lend.
Since there are no signs that the retail sector is improving, and everything is pointing to things getting worse, the owners of these shops face holding their properties without any income for a long time to come.
What is the answer? Who really knows but for what it’s werth, I would say they should cut their losses and run!!!!!