Adaptation of the Retail Investment Market in the UK: Changing Tenant Covenant Perceptions and Flexibility in the Lease Model

Orr, A. M. , Gardner, A., Jackson, C. and White, J. T. (2022) Adaptation of the Retail Investment Market in the UK: Changing Tenant Covenant Perceptions and Flexibility in the Lease Model. In: 28th Annual Pacific Rim Real Estate Society Conference, 19 Jan 2022,

Abstract

The retailing industry in the UK, while dynamic and responsive to changes in consumer demand, is experiencing unprecedented structural change. The focus of attention on the consequences of these changes for urban centres has typically been on the retailers themselves and the impacts on local services and economies but with little attention given to the implications for property owners. Yet, understanding the responsiveness of landlords and their behaviours is an important step towards mastering and managing the adaptive mechanisms within a retailing system. A qualitative research approach is adopted in this study to examine the changes, before and during the pandemic, on the retail investment market. The findings, based on the analysis of primary data collected in semi-structured interviews, reveal fundamental changes in the leasing model. This paper explores the changes to the lease model and landlords’ perceptions around tenant covenant, and the implications for the valuation of retail assets.

• Item Type: Conference Proceedings
• Keywords: Retail market, lease model, turnover rents, tenant covenant.
• Status: Published
• Refereed: Yes
• Glasgow Author(s) Enlighten ID: White, Professor James and Orr, Dr Allison and Gardner, Dr Alan
• Authors: Orr, A. M., Gardner, A., Jackson, C., and White, J. T.
• Subjects: H Social Sciences > H Social Sciences (General)
• College/School: College of Social Sciences > School of Social and Political Sciences > Urban Studies