As analysts predict that the retail sector will be in an all-out recession in 2012, vacant property specialist VPS is warning retail property owners and administrators not to be complacent: they must ensure that vacant retail premises on high streets, retail parks or in shopping centres are well secured to prevent costly theft and damage, particularly following the riots of 2011.
Last year saw 31 retail companies failing, plus 2,469 stores and 24,025 employees affected. Combined with the 2010-2011 number of non-domestic burglary offences totalling 264,492 in England and Wales, this is a strong indication of the risk associated with vacant shops.
John Wright, UK director of national accounts at VPS, explained: “As more and more property managers and owners are left with vacant retail units, there’s not only the risk of lost rental income but also the potentially high cost of metal theft, vandalism and even arson.”
He added: “There are discreet solutions for making property look less vacant but at the same time protecting the asset. In our experience, taking immediate action when a unit becomes vacant is the most effective way to protect a property and mitigate any possible issues that can arise.”
Effective steps to be taken
Landlords or managers of retail units can take the following steps to ensure their property is well protected during these turbulent times:
- You are required by law to inform your insurer immediately when a property becomes vacant. They may have specific requirements to ensure your insurance remains valid.
- Undertake a comprehensive risk assessment using a registered company to assess potential risks, such as fire hazards and public liability exposure as well as the exposure to damage from squatters/criminals.
- Drain down services are a cost-effective preventative measure: these include the drain down of all water systems, as well as the switching off of other utilities such as gas and electric services. This prevents catastrophic damage to vacant properties if metal pipes are stolen.
- High security steel screens and doors can prevent unauthorised access to buildings and, in turn, protect metals inside a building. These methods are much more effective than plywood boarding (which is easy to breach and can be used by arsonists as flammable material).
- A shop window display can reduce the risk of vandalism and will enhance aesthetics to shorten the period of vacancy. Adding a semi-permanent covering to the back of a window (which can be easily removed and will project for sale or for let information plus an image of the shop) will prevent the property from looking vacant.
- Electronic security can be rapidly deployed to provide instant security. Sensors provide immediate detection and report on a range of incidents including intruders, flooding and fire.