Despite the corona crisis, the retail vacancy rate has barely increased

The shopping streets are quite empty, the number of passers-by is much lower than a year earlier. Yet this void due to the corona crisis does not lead to an increase in the retail vacancy rate, according to figures from research firm Locatus.

At the end of 2020, the vacancy rate of retail space was only 7.6 percent, compared to 8.1 percent at the beginning of the year. If one looks at the number of properties that are vacant, this concerns 7.5 percent of all retail properties, according to the Locatus figures. Locatus initially expected that the retail vacancy rate would increase during the corona crisis, but that did not happen for three reasons: the government support measures kept entrepreneurs afloat, the third quarter was relatively good in many sectors and areas and the conversion of retail properties to non-residential properties. retail has increased again.

In 2020, 7,500 buildings will be converted to a non-retail function. Because 6,100 new retail properties were added in the year, the retail stock decreased by only 1,400 properties. Locatus warns, however, that the barely increasing vacancy rate seems calm before the storm. Companies are now surviving because of the support measures, but they will one day come to an end. Deferred rents and taxes must ultimately be paid once. Locatus indicates that the forecast it made for 2022, which it published in September, was too positive. That forecast ignored a third wave of corona and a closure of non-essential stores. It is therefore expected that the vacancy rate in 2022 will be higher than 10 percent of all retail properties. “How the vacancy rate will develop in 2021 is entirely dependent on the generosity of the Dutch government,” the report said.

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