Fylde Coast Commercial Property Insight

Fylde Coast Commercial Property Insight – Q2 2025

The Fylde Coast market continues to quietly outperform national sentiment. While headlines warn of capital value pressures and interest rate uncertainty, local investor and occupier activity has remained steady — even resilient — through Q2. Blackpool, Cleveleys, Lytham and St Annes each show signs of forward motion, with realistic pricing, EPC strategy, and flexible lease structures proving key to unlocking deals.

Sales and Leasing Activity

• Freeholds under £500k remain the most liquid part of the market, particularly where pricing reflects EPC status or minor capex needs (Knight Frank)

• Larger deals are taking longer to close unless well-positioned or turn-key, especially where the upper floors require investment or reconfiguration (Savills).

• Lytham and Fleetwood saw the highest deal volumes, with semi-investment stock (retail + upper parts) appealing to cash investors seeking modest income and upside.

Development & Infrastructure

• Blackpool Central: Progressing but delayed. Developers remain committed, though inflation and infrastructure complexity are biting.

• Talbot Gateway: DWP hub construction continues, with positive noise around associated footfall and retail spill over.

• St Annes Regeneration: Garden Street and Pier Link projects move into the detailed design phase, with a late 2025 build target (Fylde Council).

• Enterprise Zone Plots: New industrial plots released near Hillhouse and Blackpool Airport are attracting early interest, especially from clean energy and light manufacturing occupiers (C&W).

Retail & Leisure

• Cleveleys: Flagship Store Loss Risk Remains - M&S’s proposed relocation to Norcross continues to cause concern. Without conditions to retain a presence in Cleveleys, the town centre risks losing a vital footfall anchor. The outcome could influence vacancy and retail resilience for years to come (Blackpool Gazette).

• Lytham: Return to low availability - While some Christmas voids persisted into April, improved weather and summer footfall have accelerated take-up. A new Loungers venue has opened underscoring the town’s F&B strength.

• Blackpool: Abingdon Street Market Relaunch - Relaunched as “Made in Blackpool”, the historic market now features artisan traders and local produce. Early footfall data suggests success, with traders reporting strong weekend performance.

• St Annes: Public Realm Improvements Underway - Retailers are reporting improved confidence as town centre works near completion. Targeted public realm investment is starting to pay dividends visibly and commercially.

Occupier News

• Industrial demand remains strong, especially for sub-5,000 sq ft units with good eaves and access (CBRE).

• Office market remains challenging. Secondary stock lingers unless rebranded as managed workspace or hybrid retail.

• Serviced office operators are active around Lytham and St Annes, offering flexible models attractive to consultants and small teams (Savills).

• Leisure operators are positioning early for the summer trade, with short-term lets and pop-ups increasing across the coast (Knight Frank).

Capital Market Yields (Q2 2025)

• Retail – High Street | 7.0–7.25% | ↔ Stable | Footfall risk priced in; cautious optimism returning

• Industrial – Small Units | 5.75–6.25% | ⬇ Slight firming | Strong demand from owner-occupiers and local logistics

• Leisure / Hospitality | 6.5–7.25% | ⬆ Strengthening | Growing appetite from North West funds

• Office – Secondary | 9.0%+ | ⬆ Weak | EPC drag and low take-up creating value traps

Policy & Regulation Update

• EPC Compliance is becoming a major factor - the 2027 minimum EPC level ‘C’ may not be legislated yet, but the market recognises weaknesses:

  • Discounts of 10–20% on non-compliant stock are now commonplace.

  • Lending margins are increasing by 30–50bps for properties rated D or lower (CBRE).

  • Retrofitting costs often exceed £30–50 psf — and are higher in historic buildings.

• Blackpool Local Plan (Part 2) has been adopted, but planning applications remain limited. Market engagement will be key to unlocking its intent.

• Business Rates Relief remains a grey area post-April. Smaller retailers are awaiting clarity from the Autumn Statement.
  

Deal Watch

• Victoria Road West, Cleveleys – A new operator has taken over the Regal Hotel in the centre of Cleveleys. A well run flagship hotel will bring more holiday trade through increased tourism footfall.

• Queen Street, Lytham – Sale of former restaurant completed at c.£610,000 (off-market).

• Carr Farm, Lytham – Engineering occupier secures workshop site; sale completed in early May.

• Abingdon Street, Blackpool – Multiple artisan traders signed new 12–24 month licences in May post-relaunch.

• Warehouses – Fleetwood – Sub-10,000 sq ft unit let to a marine supplier after 7 months vacant.
  

National Context (Selected Indicators)

• BoE Base Rate | 4.50% | ↔ Holding | Bank of England

• Inflation (CPI) | 3.4% | ⬇ Easing | ONS

• GDP Growth (Q2 est.) | 0.4% | ↗ Slight uptick | ONS

• 10-Year Gilt Yield | 3.7% | ↔ Stable | Bloomberg

• UK Capital Values | -10.7% YoY | ⬇ Still falling | CBRE

Outlook – Q3 2025

• Resilient Demand expected across well-configured smaller units — especially where EPC upgrades are in hand.

• Retail Centres like Lytham and St Annes could outperform if summer footfall is sustained.

• Cleveleys remains in the balance — the M&S outcome will shape sentiment in H2.

• Leisure Pipeline (including Larbreck Golf Village) could reframe regional tourism zones — execution is key.
  
  

"Motivated sellers and knowledgeable buyers are finding alignment. If pricing reflects today's realities, deals are happening."