As high streets struggle and offices evolve, one sector of the UK commercial property market is quietly outperforming forecasts in 2025: retail parks.
Often dismissed in the post-pandemic recovery as relics of out-of-town development, retail parks have proven unexpectedly resilient—and even profitable—for savvy investors. With robust footfall, long leases and defensive tenant profiles, they’ve become the new darlings of institutional and private buyers alike.
So why the resurgence—and will it last?
What’s driving retail park demand in 2025?
Drive-to convenience
With the return of car-first shopping habits and continued demand for click-and-collect, retail parks with ample parking have outperformed enclosed shopping centres.
Strong anchors
Supermarkets, discount brands (like B&M and The Range), gyms, and pet stores provide stable tenants with low vacancy risk.
Tenant mix diversification
Savvy landlords are reimagining retail parks as mixed-use spaces—adding EV chargers, cafes, and even medical clinics to boost dwell time and resilience.
Affordable rents
In an inflation-sensitive economy, tenants are downsizing from expensive high-street units to more flexible retail park spaces.
What are the returns?
Retail park yields in 2025 typically range from 6% to 8%, with 10-year+ leases and upward-only rent reviews still common. These income characteristics are appealing to investors priced out of logistics or nervous about city-centre office exposure.
Savills recently reported that investment volumes into UK retail parks rose by 14% YoY, driven by regional opportunities in the Midlands, North West and Scotland.
Where are the best areas to invest?
- Warrington, Cheshire – retail parks off the M62 offer strong footfall and favourable planning environment
- Newcastle and Gateshead – growing catchment areas, strong local demand
- Doncaster and Wakefield – attractive cap rates, driven by local regeneration schemes
- South Wales – lower entry prices and rising investor attention
Freehold investment in Doncaster promises over £550,000 annual income
Risks and red flags
While retail parks are trending up, investors should tread carefully:
- Tenant concentration – relying on one or two big names increases vacancy risk
- Outdated layouts – parks with poor access or dated infrastructure may struggle to attract modern brands
- Short leases – newer tenants may demand break clauses or turnover-based rent
Due diligence is essential, especially for private investors considering syndicates or REIT exposure.
Retail parks are no longer the dull cousin of high-street retail—they’re emerging as a core part of a resilient commercial portfolio. With strong yields, rebounding demand, and long-term adaptability, they’re one of 2025’s most compelling commercial opportunities.
Just make sure you’re buying the right one.
