There has been a buoyant demand of convenience stores amid buyers of commercial properties in the first half of 2024, a recent report has stated.
According to property adviser Christie & Co, the first six months of the year were characterised by strong demand for high-turnover stores, which it defines as those with sales of £20,000 a week or more. These stores usually attract “multiple offers per site”
"H1 2024 was characterised by strong demand for high turnover stores. Experienced operators want to expand their portfolios and managers want to buy their first store. This mix illustrates the strength of demand for needs-driven convenience retail and the view that the sector is a solid industry in which to invest.
"Subsequently, Christie & Co continues to receive multiple offers per site," states the adviser.
The report added that there were downsides, including “store theft, competition from discount retailers and growing uncertainty around income streams such as tobacco and vapes”, although the broader picture was good.
The report said, “Softening utility costs, decelerating food price inflation and ongoing local shopping habits” had helped retailers maintain good profitability in the first half of the year."
Petrol filling stations were another buoyant area, said the property firm, with “appetite for assets at all levels of the market”.
"During the first half of the year, Christie & Co brought twice the number of forecourts to the market compared to H1 23. The biggest operators are focussed on larger sites with potential for multiple uses. The wider pool of buyers, from smaller multiple operators to first-time buyers, have shown appetite for assets at all levels of the market," states the report.
Steve Rodell, Christie’s managing director for retail and leisure, said, “We have successfully navigated through some uncertain macro-economic waters in the last two years.
“We knew activity was on the rise in the second half of 2023, and 2024 has continued in the same vein.”
