At FG Burnett we have been tracking void rates on Aberdeen’s Union Street since February 2020. Our 6-monthly examination of vacant ground floor units on the Granite Mile is the longest established of the surveys that take place. The latest analysis as at 1st August 2024 is now available and the headline is that the vacancy rate is down to 18%, back to where it was in February 2020. That means that the vacancy rate is back to where it was “pre covid”.
Richard Noble, Managing Director at FG Burnett summarised the findings -
“Since 2020 we have seen the percentage rise from 18% to 25%, peaking in November 2022 just at the time when an Emergency Summit on the Future of Union Street was held at the Douglas Hotel. Since that time the number of empty units has gradually been falling from a high of 48 to 34 as at 1st August.
There have been a number of contributing factors to the positive changes including a gradual improvement in sentiment post covid and a much more flexible approach from landlords in relation to rent, incentives and lease duration. The positive contribution by the Our Union Street organisation, created in March 2023 should be applauded and they continue to do excellent work aided by their army of ‘glass half full’ volunteers.
Fresh Start Relief from business rates, where new occupiers receive a 1-year rates holiday has also been welcomed. Whist it is a combination of all these positive factors that has led to the improved situation on Union Street our experience is that it is the Union Street Empty Shops Grant Scheme, launched by the City Council in July 2023, that has been crucial. It appears to have been extremely well managed with applicants feeding back very positively on the grant application and delivery process. The scheme has delivered on its core objectives of reducing the number of empty shops on Union Street, leveraging private investment and supporting new business startups. In summary, the grants offer up to 50% of project costs for eligible physical works and reconfiguration with a maximum award amount of £35,000 per premises. Since its launch there have been a number of further positive tweaks to the scheme”
Could a similar, straightforward, well-run scheme be applied to the upper floors of Union Street?
It is accepted that Union Street does not look as it did in its heyday. We have stated before that the street has changed from being the City’s main retail thoroughfare and now offers a different range of services and in particular food and beverage offers. It will continue to evolve and with continued commitment from the relevant organisations it can end up in a much better place in the short to medium term. However, for that to become a reality significant public realm improvements must form part of the plan – that means a step change in the amount and quality of street furniture, tree planting and a new level of commitment to the required cleaning regime. Allied to that is the constant stream of events that must be delivered in the City Centre if it is going to compete with its hinterland. The recent bus gate and LEZ media coverage has not been helpful and at some point parties need to come together to jointly promote the City Centre rather than create a perception that it is impossible to get around.
Some have complained that whilst it is good to see vacancies come down, the quality and uses of the occupiers coming in has been rather unexciting. That has not been the case in the last six months with many of the new entrants delivering interesting uses and quality shop fits. These include on the north side 474 by CUP. Lolo & Co and Jamieson and Carry and on the south side Chaiiwala, Popeyes, Thistle Taverns and PDSA. It is accepted that a few other new entrants are not as attractive……
We are experiencing a healthy level of enquiries for those units we continue to market and expect that other agents are experiencing the same. Managing Union Street is an ongoing requirement, enclosed shopping centres are actively managed by their owners and whilst the multi ownership nature of Union Street makes it difficult, marketed effectively by an entity on behalf of the occupiers could have considerable merit. Our Union Street and Aberdeen Inspired seem well placed to develop that idea.
