Leisure after lockdown: where next for the sector?

As lockdown measures lift in cities across the country, the role of real estate in helping business to thrive once more cannot be understated. And although uncertanty remains over whether white-collar workers and shoppers will return to city centres in their droves, there are signs of hope. Figures from EG Propertylink show that enquiry volumes spiked with the February announcement of a roadmap out of lockdown. Office enquiries across UK cities that month were up by 38% on the 12-month average, with retail enquiries jumping by 35%. Still, cities will need more to encourage people back, and it is here that the spotlight falls on leisure. “The key to ensuring workers flock back to their offices and shoppers to city centres, and indeed they continue to thrive, is the continued addition of destinational drivers,” says Carlene Hughes, head of UK leisure at Savills. “The reinvention of the leisure experience is critical.” Leisure operators remain eager to look at city centre locations and developers are still committed to projects. Our data showed a near-32% rise in leisure activity during February compared to the 12-month average, including enquiries for assets as diverse as theatres, swimming pools and pubs. Between 2015 and 2019, consents for leisure space in city centres increased each year, and pipelines of more than 1m sq ft in 10 out of the 14 cities we analysed suggests that urban leisure development activity has built up during a period dominated by remote working and online shopping. Given that Brits have saved an estimated £143.5bn since last March and the Office for Budget Responsibility forecasts that around £45bn of that will be spent over the next five years, there is a significant opportunity for cities to tap into a post-lockdown boom in recreational and experiential activity. “It has been clear even from the first couple of weeks of hospitality reopening that there is significant pent-up demand from consumers for experiences,” says Hughes. “There is also a plethora of new requirements from operators that have been on ‘pause’ for the past 12 months. For those urban centres that embrace these uses, the future is certainly looking bright.” To send feedback, e-mail graham.shone@eg.co.uk or tweet @GShoneEG or @estatesgazette