Landlords left with four Shard skyscrapers’ worth of empty space in High Street bloodbath

Landlords could be left with more than four Shard skyscrapers’ worth of empty space, alarming new research warned on Tuesday.

In figures compiled for the Evening Standard, Colliers International forecast that the bloodbath in the retail and restaurant sectors will leave at least 6.2 million square feet in the UK vacant this year. Of that, 630,000 square feet is in London.

The property agent examined statistics from the Local Data Company and Goad Portal. It looked at stores which have closed either because firms have collapsed or restructured using a Company Voluntary Arrangement (CVA) — a move which allows businesses to quit stores or seek rent cuts.

Byron Burger, New Look and Jamie Oliver's Italian chain are among those which have axed sites.

The research also took into account how much more space might become empty if Mothercare and various bookies quit a number of branches.

Dan Simms at Colliers said landlords are getting increasingly “cynical” about occupiers using CVAs.

He added: “The original purpose of CVAs was to give highly distressed companies a lifeline via a comprehensive restructuring of all liabilities. But now they are becoming far too common and focused solely on property costs, leaving landlords exposed.”

Adam Coffer, the boss of landlord EPF Group which owns a number of London properties, called the figures “alarming”. He said: “CVAs play on the fears of creditors who would favour ‘something’ over nothing. They can be extremely painful for certain landlords.”

Building owners could also face more difficulties, according to reports that Next is asking landlords to agree to rent reductions if a neighbour receives a similar deal through a CVA.