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This brochure came through over the past couple of weeks. A classic 'restaurant on a boat' opportunity in South Quay:

The move comes as high street vacancy rates sit at 11% nationwide; with some forecasts claiming that marginalised areas could hit 50% by 2015, when around half of high street leases across the country are due to expire. So, with that rather bleak prediction looming in the background, RICS have reached out to the independent trader, and offered a simpler way of navigating the 'costly and complicated' process of obtaining their first commercial lease. 

This partially mirrors an initiative taken some years ago by the British Property Federation; who published a 'short commercial lease' template; albeit without a discernible leaning towards either 'new' or 'independent' retailers; and - curiously - with no specified limit on lease length (aside from the word 'short'). 

Embedded within the wording of RICS' small business lease, however, are a couple of indications of current trends - for example, the lease cannot be used for an agreed term of over five years; the national average lease length currently sits at around 5.3 years. The lease also includes a break clause - something which was included in almost one third of leases agreed last year.

It also follows that RICS would specifically target small businesses and 'new and independent' retailers, after figures from 2011 indicated that such outlets clearly outperformed national multiples in terms of high street openings. They are, evidently, the best bet to try and stave off that portended 50% vacancy figure, as bigger retail brands continue to seek fewer, larger stores in refurbished megamalls or out-of-town parks; rather than forge ahead with high street expansion.

Hopefully, an easier-to-navigate path to high street occupation will result in a healthier vacancy rate figure in future years - and will put and end to landlords' temptation to charge absurd nominal rents to national chains in order to avoid vacancy rates. 

The lease template is available to download here.

The study shows that over the past nine years, the average lease length has fallen from just shy of ten years to just under seven. In addition, the percentage of leases which now include a break has doubled.

The figures got me wondering about 'averages' across the retail market - and whether the available space across the country could be distilled down into one unit; the ultimate 'average space', to display what's typically available to UK retailers at this point in time.

Using samples from EGi's researched availability, which currently holds over 12,000 retail units being marketed, I found that the average retail unit currently available measures 2,941 sq ft; would be marketed with a lease length of 11.82 years; and would have an asking rent of £43,281 per annum.

'Average' Shopping Centre Availability: 2,482 sq ft; 11.45 years; £72,195 per annum.

'Average' Retail Park Availability: 12,800 sq ft; 14 years; £171,094 per annum.

'Average' Other Retail Space: 1,837 sq ft; 11.57 years; £29,437 per annum.

'Average' New FRI Leases: 3,069 sq ft; 11 years; £57,303 per annum.

'Average' Lease Assignments: 3,746 sq ft; 13.23 years; £111,547 per annum.

Whilst this is only a sample, it indicates that the space being marketed at the moment would, on average, be looking for a retailer to commit to a lease length far above that which is representative of the market. The difference between assignments and new leases can probably be attributed to struggling brands trying to divest themselves of lengthy, expensive obligations agreed during better economic times.

The majority of the 'other' retail space is located on high streets - and the fact that, on average, the £/sq ft ratio is closer to that of retail parks than shopping centres shows the level to which those spaces have struggled to attract occupiers. Indeed, shops have been going for as little as £1 per annum - so perhaps it's surprising to see the figure so high!

On average, then, retailers are currently best off going for a new lease on an out-of-town scheme; whilst the most costly deal would be agreeing to take an assignment at a shopping centre - which honestly comes as no surprise at all.