Retail's woes were well known long before the pandemic when between 25% - 40% of retail space was considered to be no longer viable or needed amid the challenges of a shift in shopping habits. Substantial rental debt that has accrued since March 2020 still sits within the sector, with a line of recent court cases finding in favour of landlords seeking and obtaining judgment for those unpaid arrears.  

But it should not be seen as all doom and gloom. For investors and landlords there are opportunities to repurpose retail space on a large or small scale and to remain alert to taking advantage of the opportunities the new use class E offers.  For retail tenants there might be the opportunity to hand back unwanted space if needed as part of a landlord's bigger scheme, as well as brands adapting their bricks and mortar estate to capture the appetite for experience stores and immersive retail experiences.  

Much will depend on the location, quality and size of the retail asset as well as the attitude of local authorities.  For example many London councils have introduced restrictions in their areas on the use of new permitted development rights in Class E, to convert commercial premises to housing where those premises are under 1,500 square metres.   

With empty Debenhams sites up and down the country as an example, including here in Guildford, future uses might include healthcare and life sciences, leisure and hospitality, residential and offices with the prospect of new mixed use schemes under one roof.  With our collective and continuing changes in retail and leisure habits, we are all likely to be visiting and using what was retail space for something quite different over the coming years.