Tough retail conditions prompt shopping centre owner to think outside the box

The owner of a Birmingham retail centre is applying for planning permission to maximise the potential of the site amidst the tough trading climate for the retail sector.

Cushman & Wakefield has prepared a study on behalf of Perry Barr SARL, to support proposals for a flexible change of use to units at the One Stop Shopping Centre.

If permission is granted then it would allow the landlord to consider alternate uses for some of the units to ease vacancy rates and improve the mix of operators.

Currently more than 80% of the centre’s floor area is taken up for retail use, with the remainder comprising financial and professional services, food and drink outlets and a permission for a betting shop.

The report by Cushman & Wakefield states: “The proposals will introduce greater flexibility for the landlord to introduce a wider range of town centre appropriate uses within the shopping mall and reduce vacancy periods, creating more jobs and retaining more customers.

“The proposals will remove the need for a planning application whenever a unit changes between A1 (retail), A2 (financial and professional) and A3 (cafe and restaurant). This will make the shopping mall more attractive to prospective tenants by reducing planning risk and timescales for fit-out and occupation.”

It said the owner of the centre was looking to compete on an equal basis with other district shopping area nearby.

“There is an increasing need to take a flexible approach to the way in which core retail areas evolve. The combination of recovery from poor economic conditions and changing shopping patterns has put greater pressure on town and city centres in all locations,” adds the report.

“As such, void units within town and city centres can be increasingly hard to let, thus undermining the vitality and viability of these areas.”

It said units would be let to occupiers as the landlord judged to be appropriate. In this way, a greater range of operators would help to attract a more diverse customer base to the shopping mall.

In conclusion, it said: “The mix of uses to which the proposed flexible permission relates are all uses which are appropriate within a retail centre location and will support the wider function of Perry Barr district centre.”