Convenience retail: the food anchor carries it all

What actually carries the location

Catchment, visibility, parking ratio and competition within a few minutes' drive. These four decide whether the anchor renews at expiry — and renewal probability is the single biggest value driver in the segment.

One practical point: check whether the store still matches the operator's current format size. Many chains have grown their standard footprint. A unit that is too small will be given up at lease end, however good the location.

Turnover rents, realistically

They sound attractive but are difficult in valuation. Banks generally underwrite the minimum rent only and buyers discount the variable element heavily. Document the history properly or it will simply not be reflected in the price.

Conversion as a reserve

For many retail park sites the real value sits in the land. Densification with residential above the store is now standard in conurbations and changes the valuation materially — provided planning permits it. We check this in every mandate, even where no sale is planned.