Fylde Coast Commercial Property Insight
Q1 2025
4/13/20253 min read
Fylde Coast Commercial Property Insight – Q1 2025
The national commercial property landscape may be softening, but the Fylde Coast tells a different story. Here, a quiet consistency prevails, with Blackpool, Lytham, Fleetwood, and Cleveleys showing steady activity this quarter. While fireworks are absent, so too is stagnation. Investors are proceeding with caution, occupiers are keenly aware of costs, and landlords are facing the stark reality that EPC compliance demands attention and investment.
Sales and Leasing Activity
Smaller, sub-£500k freeholds continue to transact, particularly in secondary retail and light industrial (Knight Frank).
Properties with vacant possession and realistic pricing are moving; others are experiencing extended periods on the market.
Yield-focused investors are exploring opportunities in Lytham and Fleetwood, but properties with upper parts, EPC issues, or capital expenditure risks are subject to aggressive price negotiations (Savills).
Development Highlights
Blackpool Central project is progressing, though delays and cost inflation are causing concern among developers (Blackpool Council).
Talbot Gateway's DWP hub construction advances, a significant development for the Fylde region.
New Enterprise Zone plots were released in March, featuring improved access and utilities, enhancing industrial prospects (Cushman & Wakefield).
Investment Trends
Hospitality and leisure sectors remain active.
Office properties face challenges unless they are turn-key, competitively priced, or creatively repurposed (CBRE).
A gap exists between asking prices and final deal values, but skilled negotiation can bridge this.
Retail & Leisure Watch
Cleveleys Anchor Risk - M&S's proposed Norcross store threatens Cleveleys town centre. Without conditions to maintain their existing presence, Cleveleys risks losing its supermarket anchor and associated footfall. Swift action is needed to avoid long-term vacancies (Blackpool Gazette).
Christmas Void Bow-Wave - Lytham and Cleveleys saw a post-Christmas increase in vacant properties. While rising costs and uncertainty contributed, vacancy levels have now stabilized to seasonal norms (Cushman & Wakefield).
Abingdon Street Market Revamp - Blackpool's historic market relaunches under the "Made in Blackpool" brand, focusing on artisan food, crafts, and local identity (Blackpool Council). This initiative aims to boost footfall.
Leisure Pipeline - Larbreck Golf and Leisure Village planning application includes 495 lodges, a hotel, spa, and golf facilities (Fylde Borough Council). Its success hinges on execution to avoid becoming solely a holiday home development.
Occupier News
Industrial demand remains strong, particularly for modern spaces under 5,000 sq ft (CBRE). Office take-up is slow, but serviced office operators and consultants are expanding near Lytham and St Annes (Savills). Seasonal leisure operators are positioning early for a potentially strong summer season (Knight Frank).
Capital Market Yields
Lenders remain cautious. Assets with capital expenditure risk, EPC non-compliance, or management complexities face stringent conditions or rejection (Avison Young).
Retail – High Street | 7.0–7.5% | Stable Confidence returning, but deal volume remains low (Savills).
Industrial – Small Units | 6.0–6.25% | Slight firming. Owner-occupiers driving competition (CBRE).
Leisure / Hospitality - | 6.5–7.25% | Strengthening Rising interest from North West funds (Cushman & Wakefield).
Office (Secondary) - |9.0%+ | Weak EPC liabilities and low demand are concerns (Savills)
Policy & Regulation Update
EPC upgrades are a growing concern for landlords. Buildings below a C rating risk significant value declines without retrofitting (Savills).
Blackpool's Local Plan Part 2 is adopted but has yet to significantly impact planning application volumes.
Business rate relief remains inconsistent, with town centre retailers awaiting reform.
EPC Reality Check: The New Asset Divider
While minimum EPC C rating legislation for commercial buildings by 2027 is not finalized, the market is reacting as if it were (Government Consultation).
Discounts of 10–20% are applied to sub-C rated stock in secondary retail and office sectors (Savills).
Lenders are tightening terms, increasing borrowing costs by 30–50 bps for poorly rated assets (CBRE).
Retrofitting costs can exceed £30–50 per sq ft (Avison Young).
Pre-1990s stock in Blackpool, Cleveleys, and Fleetwood is particularly at risk.
Capital values are increasingly linked to energy performance, making EPCs a key driver of liquidity, value, and funding.
Deal Watch
Queen Street, Lytham – Restaurant freehold sold off-market for c.£610,000 (Blackpool Gazette).
Kincraig Court, Bispham – Industrial unit (30,000+ sq ft) under offer; asking £1.85m (Blackpool Gazette).
Promenade, Blackpool – Former guest house converted to apartments; final unit sold in March (Land Registry).
Carr Farm Workshop, Lytham – Sale agreed in February; buyer reportedly a regional engineering firm (Blackpool Gazette).
National Context
UK commercial capital values are down 12% year-on-year (CBRE).
Office stock is being re-evaluated based on EPCs rather than tenant covenants (Savills).
Retail is performing better than expected in coastal and commuter towns (Cushman & Wakefield).
Institutional investment is shifting towards leisure, healthcare, and build-to-rent (JLL).
Financial Indicators – Q1 2025
BoE Base Rate 4.50% Holding (Bank of England).
Inflation (CPI) 3.7% Easing (ONS Retail Sales Bulletin – February 2025).
GDP Growth 0.3% (Q1 est.) Sluggish (ONS GDP Quarterly Report).
10-Year Gilt Yield 3.8% Stable - (Bloomberg UK Government Bonds).
UK Capital Values -12% YoY Falling (CBRE).
Outlook – Q2 2025
Expect continued stability.
Cash-rich investors will find opportunities in smaller lots, particularly with motivated sellers and EPC-challenged properties.
Summer tourism will boost leisure demand but will not salvage poor-quality stock.
Council planning decisions will significantly impact town centre viability by 2027.