The case for UK retail parks

For use by professional clients and/or equivalent investor types in your jurisdiction (not to be used with or passed on to retail clients).

A joint paper by Capital Economics and Columbia Threadneedle Investments

Retail parks are uniquely positioned at the intersection of three structural forces: value-oriented consumer behaviour, demand for convenience, and a constrained supply pipeline. We assess the outlook for one of the UK’s most structurally supported real estate sub-sectors.

Retail parks: Key takeaways

Aligned with consumer trends. Household demand continues its shift towards value and convenience, both of which are structurally supportive of the retail park sub-sector.
Highly restricted development pipeline. Retail park development averaged under 250,000 sq ft per annum between 2020 and 2025, far below the 4.1 million sq ft on average between 1990 and 2000. Overall vacancy is around 3.5%.
The combination of structural demand and a limited development pipeline is expected to support superior rental growth and total returns over the medium term, positioning retail parks as one of the top performing UK commercial sub-sectors between 2026 and 2030.

~3.5%

Retail park vacancy rate

+1.4%

Retail park footfall increased by 1.4% in the 12 months to June 2026, outperforming shopping centres and high streets

2x

Discount variety and discount grocery segments have doubled their footprint over the past decade

The UK retail sector has undergone a decade of structural change, with retail parks emerging as one of the sub-sectors most closely aligned with the resulting structural shifts in consumer behaviour and occupier requirements.

Two long-term trends now define UK household spending: a heightened focus on value, and a preference for low friction, convenience-oriented purchasing. Retail parks are well-positioned to benefit from both given their car accessible edge-of-town locations, tenant composition and physical configuration. In parallel, planning constraints and elevated construction costs continue to limit new supply, sustaining a tight market for existing assets.

Together, these dynamics should support rental growth and total returns above those of most other real estate sub-sectors over the next five years.

Interested in learning more?

Download the full UK retail parks report where we examine the underlying drivers behind this trend: Consumer behaviour and the shift towards value and convenience; Retail park characteristics, and why they are functionally relevant to the modern occupier; and the Market outlook, where structural demand meets constrained supply.

15 October 2026

2026年 October 15日

Key topics

Subscribe to insights

Get the most out of your email by tailoring the types of insights and information you would like to receive from us.

Latest articles

15 Oct 2026

2026年 October 15日

15 Oct 2026

2026年 October 15日

Pyrspectives – Profits are at record highs – Are markets too optimistic?

Explore Pyrford's Q3 2026 investment outlook covering bond yields, equity valuations, corporate profits and market risks.

13 Oct 2026

2026年 October 13日

In Credit Weekly Snapshot – The real thing

Inflation continues to influence government finances, with UK real yields nearing 2%, their highest level since 2008, and US real yields approaching 3%.

Important information

For use by professional clients and/or equivalent investor types in your jurisdiction (not to be used with or passed on to retail clients). For marketing purposes.

This document is intended for informational purposes only and should not be considered representative of any particular investment. This should not be considered an offer or solicitation to buy or sell any securities or other financial instruments, or to provide investment advice or services. Investing involves risk including the risk of loss of principal. Your capital is at risk. Market risk may affect a single issuer, sector of the economy, industry or the market as a whole. The value of investments is not guaranteed, and therefore an investor may not get back the amount invested. International investing involves certain risks and volatility due to potential political, economic or currency fluctuations and different financial and accounting standards. The securities included herein are for illustrative purposes only, subject to change and should not be construed as a recommendation to buy or sell. Securities discussed may or may not prove profitable. The views expressed are as of the date given, may change as market or other conditions change and may differ from views expressed by other Columbia Threadneedle Investments (Columbia Threadneedle) associates or affiliates. Actual investments or investment decisions made by Columbia Threadneedle and its affiliates, whether for its own account or on behalf of clients, may not necessarily reflect the views expressed. This information is not intended to provide investment advice and does not take into consideration individual investor circumstances. Investment decisions should always be made based on an investor’s specific financial needs, objectives, goals, time horizon and risk tolerance. Asset classes described may not be suitable for all investors. Past performance does not guarantee future results, and no forecast should be considered a guarantee either. Information and opinions provided by third parties have been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed. This document and its contents have not been reviewed by any regulatory authority.

In Australia: Issued by Threadneedle Investments Singapore (Pte.) Limited [“TIS”], ARBN 600 027 414. TIS is exempt from the requirement to hold an Australian financial services licence under the Corporations Act 2001 (Cth) and relies on Class Order 03/1102 in respect of the financial services it provides to wholesale clients in Australia. This document should only be distributed in Australia to “wholesale clients” as defined in Section 761G of the Corporations Act. TIS is regulated in Singapore (Registration number: 201101559W) by the Monetary Authority of Singapore under the Securities and Futures Act (Chapter 289), which differ from Australian laws.

In Singapore: Issued by Threadneedle Investments Singapore (Pte.) Limited, 3 Killiney Road, #07-07, Winsland House 1, Singapore 239519, which is regulated in Singapore by the Monetary Authority of Singapore under the Securities and Futures Act (Chapter 289). Registration number: 201101559W. This advertisement has not been reviewed by the Monetary Authority of Singapore.

In Hong Kong: Issued by Threadneedle Portfolio Services Hong Kong Limited 天利投資管理香港有限公司. Unit 3004, Two Exchange Square, 8 Connaught Place, Hong Kong, which is licensed by the Securities and Futures Commission (“SFC”) to conduct Type 1 regulated activities (CE:AQA779). Registered in Hong Kong under the Companies Ordinance (Chapter 622), No. 1173058.

In Japan: Issued by Columbia Threadneedle Investments Japan Co., Ltd. Financial Instruments Business Operator, The Director-General of Kanto Local Finance Bureau (FIBO) No.3281, and a member of Investment Management Association of Japan and Type II Financial Instruments Firms Association.

In the UK: Issued by Threadneedle Asset Management Limited, No. 573204 and/or Columbia Threadneedle Management Limited, No. 517895, both registered in England and Wales and authorised and regulated in the UK by the Financial Conduct Authority.

In the EEA: Issued by Threadneedle Management Luxembourg S.A., registered with the Registre de Commerce et des Sociétés (Luxembourg), No. B 110242 and/or Columbia Threadneedle Netherlands B.V., regulated by the Dutch Authority for the Financial Markets (AFM), registered No. 08068841.

In Switzerland: Issued by Threadneedle Portfolio Services AG, Registered address: Claridenstrasse 41, 8002 Zurich, Switzerland.

In the Middle East: This document is distributed by Columbia Threadneedle Investments (ME) Limited, which is regulated by the Dubai Financial Services Authority (DFSA). For Distributors: This document is intended to provide distributors with information about Group products and services and is not for further distribution. For Institutional Clients: The information in this document is not intended as financial advice and is only intended for persons with appropriate investment knowledge and who meet the regulatory criteria to be classified as a Professional Client or Market Counterparties and no other Person should act upon it.

This document may be made available to you by an affiliated company which is part of the Columbia Threadneedle Investments group of companies: Columbia Threadneedle Management Limited in the UK; Columbia Threadneedle Netherlands B.V., regulated by the Dutch Authority for the Financial Markets (AFM), registered No. 08068841.

Related Insights

20 July 2026

Alternatives

Liam Taylor

Portfolio Manager

From policy to portfolio: investing in UK natural capital

We are always searching for opportunities to align financial and environmental outcomes. Biodiversity Net Gain legislation is one such investable opportunity, linking ecological restoration with durable, policy-supported returns.

15 June 2026

Alternatives

Joanna Tano

Head of Research, European Real Estate

Alex Dunn

Research Analyst, European Real Estate

European Real Estate 2026: Half-year health check

The macroeconomic backdrop has weakened, but there is a solid base for recovery – a recovery that has been put back rather than put off.

30 April 2026

Alternatives

Joanna Tano

Head of Research, European Real Estate

UK Real Estate: Talking Points April 2026

Welcome to our quarterly snapshot of current real estate market trends.

15 October 2026

Multi-Asset

Luke Casey

Senior Client Portfolio Manager, Head of Client Strategy

Pyrspectives - Profits are at record highs - Are markets too optimistic?

Explore Pyrford's Q3 2026 investment outlook covering bond yields, equity valuations, corporate profits and market risks.

13 October 2026

Fixed income

In Credit Weekly Snapshot – The real thing

Inflation continues to influence government finances, with UK real yields nearing 2%, their highest level since 2008, and US real yields approaching 3%.

12 October 2026

Multi-Asset

Anthony Willis

Senior Economist, Multi-Asset Solutions team

Market Perspectives: Why is oil stuck at $100/barrel?

Oil markets have received some comparatively encouraging signals from the Middle East, but the improvement in physical supply has yet to translate into a decisive fall in prices.

Important information

For use by professional clients and/or equivalent investor types in your jurisdiction (not to be used with or passed on to retail clients). For marketing purposes.

In Switzerland: Issued by Threadneedle Portfolio Services AG, Registered address: Claridenstrasse 41, 8002 Zurich, Switzerland.

The case for UK retail parks

A joint paper by Capital Economics and Columbia Threadneedle Investments

Retail parks: Key takeaways

~3.5%

+1.4%

2x

Interested in learning more?

Subscribe to insights

Latest articles