Insights.

Vacancy to vibrancy. Opinion: Callum Stephenson

Vacancy isn’t inevitable – it’s operational. When landlords and their advisors commit to a plan, remove friction, and curate a tenant mix with intent, voids diminish.

At GCW, a partnership model for working closely with landlord clients and other relevant stakeholders is proving highly successful in filling vacant retail units. Hanningtons Lane in Brighton is a great example of the model in action. Over the decade of GCW’s involvement, this characterful, diverse shopping destination has gone from around 80% vacancy to being fully leased – thanks to a disciplined, focused approach.

A shared strategy for avoiding voids.

Reducing vacancy requires owners and advisors to work closely together towards the same operating strategy – with clearly defined roles, quick decision- making and accurate data. Also, relentless follow- through is vital, never losing sight of the goal and not letting anything get in the way. When all parties have a shared plan, agreeing the desired tenant mix, they avoid time-consuming friction, and voids are short-lived.

Partnership in this sense isn’t a buzzword. It’s a working method, involving not only landlords and advisors, but also other stakeholders. At Hanningtons Lane, these have included the local authority, the Business Improvement District, and a variety of independent businesses in the area. Bringing them together in pursuit of a clear long-term vision meant everyone knew exactly what they were aiming for, and was committed to getting there.

Four-step partnership model.

In the early days of GCW’s work at Hanningtons Lane, it wasn’t necessarily part of a wider destination. Among the empty units, there were only one or two compatible retailers, rubbing shoulders with a mix of less desirable temporary occupiers. Attracting tenants was therefore a tough sell, requiring them to buy into the promise that they could cultivate a business in an environment that would evolve in the right direction – and this was where the partnership model proved invaluable.

It took place over four stages: audit, engage, curate and promote. Auditing meant working as a team with the landlord and other stakeholders to understand every single unit size, any constraints each one faced, and their state of readiness. So everyone knew exactly what they needed to do, whether a unit was suitable to let tomorrow or needed work to get it up and running.

As part of this auditing process, GCW developed a tenant- mix strategy. Rather than simply aiming to let as many units as possible to anyone who would pay the highest rent, the strategy defined exactly what Hanningtons Lane was going to look like. Which sort of businesses would be where, and what sort of customers they would attract. How it would work as a system.

Next, engaging meant building on the relationships GCW had already formed with the landlord and wider stakeholders during the auditing phase. The details of the strategy were agreed, including timings, and GCW worked hard to ensure everyone was happy and supported the plan. 

Then the curation stage involved proactively approaching tenants that fitted the strategy. To learn more about the potential and make the right contacts, the GCW team physically walked the surrounding Lanes and talked to existing occupiers and shoppers. What did the retailers want to see happen? What were their customers looking for? In Brighton in particular, how did demand differ between locals and tourists? And then, over time, GCW placed the right tenants in the right units, bringing the strategy to life. 

The final step, promotion, is an ongoing process. From the first occupation to the latest developments on Hanningtons Lane, the team has always shouted about every achievement – not to create spin, but to promote substance. Any openings or expansion plans have always been clearly communicated, ensuring all progress is recognised and understood.

The value of this partnership model is obvious in the transformation of Hanningtons Lane. Of course, some of the early tenants took a risk when it was mostly vacant, but making intentions for destination clear – and having key stakeholders on board – mitigated some of that risk and gave them the confidence to proceed. Some have now signed up to longer-term leases, and some have expanded. Homewares retailer &halt, for example, has expanded twice, progressing from one unit to three and becoming a popular brand in the area.

Principles that can be applied elsewhere.

What worked in Brighton can work virtually anywhere. The partnership model can be emulated time and time again. Every location is different, of course, facing its own challenges and opportunities – but the basic principles, of audit, engage, curate and promote, are proven to work.

The following measures can help support the implementation of this model elsewhere. First, manage vacancies as a pipeline, measuring conversions from interest into actual lettings. Also, make dwell time central to the strategy – when you’re devising a tenant mix, think about what will make people stay in the area, whether it’s coffee shops, restaurants or cultural attractions. And look for growth potential; ‘local heroes’ become well-known and draw people in, as well as reinforcing confidence among other retailers. Lastly, once you’ve got a winning tenant mix, protect it. Make sure you keep engaging with tenants – find out what’s working, and where any help might be needed.

Most importantly, it’s essential to continue to nurture the partnership behind your success. The combined skills and resources of landlords, local authorities and other stakeholders are what will keep high streets alive.