Last week saw the demise of one of the most recognized names on our high streets. Habitat, which was formed nearly half a century ago, was placed into administration by its owners with losses of nearly £90m. It had 33 stores nationwide and employed nearly 800 people.
This is yet another sign that the economy, retail sector and property market are all still under immense pressure and almost certainly facing a bleak and turbulent future over the next couple of years.
We are likely to see many more high street retail casualties in the future which in turn will have a damaging effect on the retail property market. As more retailers go bust, property prices will continue to fall and more shops will stand empty. Banks will be forced to demand that loans are repaid and where this is not possible, they will have no choice other than to repossess.
High street retail casualties are here to stay and with this in mind, property owners should start getting their houses in order and consider selling before it is too late.
To stay abreast of the latest commercial property market news, visit Jason Werth’s sell my commercial property blog