Background
25–27 Fishergate, Preston occupies a prime pitch within Preston city centre, comprising two adjoining retail units in a highly prominent retailing location. The larger unit, formerly occupied by HMV, but most recently a charity operator, became vacant following a relocation. The adjoining unit was formerly let to Mountain Warehouse.
Market Context
At the time of instruction, Preston’s retail market was characterised by a clear divergence in demand. There was sustained occupier appetite for large, well configured units within the city centre core, driven by both national multiples and strong regional operators. There was, however, little demand for small to mid-size units due to an oversupply, driven by vacancy within the city’s two main shopping centres.
The Challenge
The principal challenge was the disposal of the two units in isolation. Despite their prominent location, the units had a restricted and compromised frontage, were in a poor state of repair and suffered from less than ideal layouts. Further subdivision was explored, but ultimately discounted as unviable from both a design and leasing perspective.
Strategy
Our strategy was driven by a clear understanding of occupier demand and market conditions:
Demand-Led Positioning: Rather than pursue a challenging subdivision, we focused on identifying retailers with a genuine requirement for larger city centre representation.
Asset Optimisation: We initiated discussions with Deichmann, who were not represented in the town, but who we knew were exploring an expansive roll out to larger centres where they did not have a presence.
Execution
Following proactive engagement, Deichmann agreed terms to take both units to create one larger unit, securing occupation of the previously vacant space, on one lease for a long term at market rent.
Result
Our market-led approach delivered a fully let asset and mitigated leasing risk across both units. By aligning the property with occupier demand, we:
- Eliminated a challenging large-format vacancy
- Brought a new tenant to the city centre
- Secured a new national covenant
- Strengthened the overall tenant mix and income profile
This outcome demonstrates the importance of proactive asset management, detailed occupier insight, and a demand-driven leasing strategy in responding to evolving retail market conditions.
