04/23/2012 BNP Paribas Real Estate launches the Retail Risk Index in the UK
BNP Paribas Real Estate UK released the first edition of the Retail Risk Index. This is the first piece of research of its kind in the UK market, and is designed to guide investors in developing their investment strategies for retail property.
The report looks at the financial health of retailers and then analyses where those retailers are located within the top 100 towns to form an index of the most and least risky towns.
The national picture shows that 10% of units in the top 100 towns are at very high risk of collapse or closure, 20% are either charity shops or vacant and a further 25% of units occupied by retailers which pose ‘high' or ‘borderline' risk. Less than half of the units analysed are occupied by retailers considered ‘secure'.
Despite having a most and least risky top 10, there are opportunities throughout for investors. It is important for investors to know where to invest and where, perhaps, they need to manage their portfolios or change their strategies.
Even the most dominant towns are not immune to risk and within the most risky towns there are thriving areas – if you know where to look.