Aspirational fashion and food & beverage brands have driven activity, with falling voids, emerging rental growth and reduced incentives reinforcing confidence. Footfall has also improved, as consumers return to the High Street for a better shopping experience, supported by click-and-collect and ongoing fulfilment challenges encouraging in-store visits.
However, recent global financial uncertainty has introduced a more cautious outlook. Rising wages, business rates and operational costs are creating a complex trading environment, and with a fragile consumer, the extent to which these costs can be passed on remains unclear.
This may lead to further consolidation across some larger retailers and banks, while pressures in the food & beverage sector, highlighted by early signals from operators such as BrewDog, are creating challenges for both independents and national brands.
Despite this, there are positives. The regions and towns we cover continue to see population growth, and the resilience shown by occupiers since COVID means many are well placed to navigate current headwinds. Stronger operators will continue to find opportunities to expand, although, as explored below, unlocking those opportunities remains a key challenge.
In Town
Cambridge
Cambridge city centre has demonstrated strong resilience, supported by robust occupier demand and persistent tourist and visitor footfall throughout the year.
Like Oxford, limited availability of retail stock has driven increased competition for vacant units within the historic core. Demand remains heavily led by food and beverage operators, particularly London-based brands seeking expansion into new regional markets. Cambridge is increasingly seen as a key target destination for these operators. Small independent requirements are still evident albeit this is typically attributed to café and light F&B uses.
Recent notable lettings include Blank Street Coffee, Rudy's Pizza, and Wingstop, alongside a new unit for Uniqlo, by approximately 40%
Take-up over the past six months has declined. This reduction is largely attributed to a tightening supply of available units and a lack of new development.
Development activity the Grafton Centre works are underway with the demolition of Eastgate house. The redevelopment will introduce significant new office and laboratory space, complemented by ground-floor retail.
The reducing completion of the sale of an oxford could also provide for a new direction..
Chelmsford
As quiet for a few months however the closure of the regional Co-op department store leaves a large whole, combined with the uncertainty around the Meadows shopping centre redevelopment.
High Chelmsford with the arrival of H and M and Bond Street with…. Provides more positive.
Ipswich
Ipswich continues to face challenges; the Butter Market Shopping centre sale may allow new investment to help mitigate the current voids
The Arrival of Jamaica Blue is a positive story, but vacant units especially large stores remain high.
Norwich
Norwich continues to attract new occupiers to the city with availability of retail stock reducing by c. 12,000 sqft within the previous 6 months.
Recent notable take up within the scheme has been dominated by F&B occupiers with Wingstop taking occupation of the former Superdry and Blacksheep coffee taking around 2400 sqft of space within Chantry Place.
Oxford
Oxford city centre’s high street retail market continues to demonstrate impressive resilience and growth. Strong, consistent footfall and sustained occupier demand combined with a limited pipeline of new space are underpinning the city’s retail performance.
This supply-demand imbalance is demonstrated by the approximate 59% reduction in take-up levels, driven not by weakening demand but by a shortage of available stock. As a result, rental growth is gaining momentum, with competition for retail premises rising while several long-anticipated developments remain in progress. Key projects such as the redevelopment of the Clarendon Centre, the Market Quarter revitalisation along the High Street, and ongoing improvements to the Covered Market are expected to further enhance the city’s retail landscape once delivered.
Recent transactions include lettings to brands such as Sephora, Oliver Bonas, and Beefy Boys, alongside Amorino securing approximately 4,700 sq ft on Cornmarket Street. Independent lettings to Aromi Café and ItaliAmo Trattoria. Together, these trends reinforce Oxford’s position as an attractive retail destination for new occupiers.
Out of Town
Similar to the high street picture, it is a story of reducing voids. There is a limited new retail development activity. In Oxford that activity is in replacing retail warehousing with office/ life science space on Botley road
Some of the other headlines in Norwich IKEA have opened on Hall Road, new build TK Maxx Announced. In Ipswich it appears Marks and Spencer’s could finally be occupying the vacant Toys R US, joining Next Outlet who occupied the former Poundland. McDonalds arrival into a retail unit at Martlesham show the flexibility in format occupiers and remain straight.
In Chelmsford, Waitrose has been announced as taking a unit in Chelmsford village.
With vacancies disappearing there is more confidence in rental growth and for owners of retail parks to implement some asset management strategies, including providing new drive thru opportunities.
Drive Thru Market
We are pleased to announce the arrival of Partner James Taylor from mcdonalds to help expand our out of town agency and development activity.
The UK drive‑thru restaurant market continues to demonstrate structural strength and resilience, materially outperforming much of the wider retail and casual dining sector. Demand is being driven by long‑term shifts in consumer behaviour, operator economics and real‑estate strategy rather than short‑term cyclical factors.
Market Fundamentals
Drive‑thru has become a core channel for UK QSR operators, accounting for a significant and growing proportion of system sales. Convenience, speed of service and price certainty resonate strongly with time‑poor and value‑conscious consumers, particularly in suburban and edge‑of‑town locations where car‑borne trips dominate.
Operators report consistently higher sales volumes and stronger margins from drive‑thru units compared with in‑line or high‑street formats, reinforcing their role as the preferred growth model.
Occupier Demand
Demand in the UK is led by:
- Established international QSR brands (e.g. McDonald’s, KFC, Burger King, Taco Bell)
- Coffee operators with drive‑thru formats (e.g. Starbucks, Costa, Black Sheep Coffee)
- Emerging chicken and burger concepts seeking scalable roadside formats
Many occupiers now prioritise drive‑thru in their capital allocation and network planning, often rationalising in‑town estates to fund roadside expansion.
Planning and Supply Constraints
Despite strong demand, the market is supply‑constrained. Key matters to consider include:
- Limited availability of sites capable of accommodating modern drive‑thru layouts, including stacking, visibility and servicing
- Increasing planning scrutiny around traffic generation, air quality, noise and late‑night use
- Highways authority resistance in certain local authority areas
As a result, consented or consent able drive‑thru sites remain relatively scarce, underpinning competitive tension and rental growth in prime locations.
Evolution of Format
The UK drive‑thru model continues to evolve in response to planning, ESG and operational pressures:
- More compact building footprints with efficient queuing design
- Dual‑lane and digital ordering to improve throughput
- Integration with click‑and‑collect and delivery
- Increased focus on sustainability, including EV charging infrastructure, energy‑efficient buildings and reduced idling times
These innovations are improving viability across a wider range of sites, including smaller roadside and edge‑of‑town plots.
Investment Market Perspective
From an investment standpoint, drive‑thru assets are viewed as defensive, income‑secure investments, typically let to strong covenants on long leases with RPI‑linked or fixed uplifts. Demand from private investors and institutions remains robust, with yields generally sharper than other retail sub‑sectors.
As a result, consented or consent able drive‑thru sites remain relatively scarce, underpinning competitive tension and rental growth in prime locations.
