"When the right properties become available in the secondary retail market, there are really good deals to be had but time is of the essence when it comes to seizing them"
- Mark Setchell - YBS Commercial Mortgages
UK high streets continue to face headwinds from shifting consumer habits, yet for investors prepared to do their homework, secondary retail investment still holds real appeal, particularly in locations where local demand remains steady.
That is the view of Yoel Rosenthal, a private investor who recently added a fully-let parade of shops to his portfolio. The property, located in Grays, Essex, includes a barbers and an opticians and sits within a well-established secondary retail location.
With tenants already in place, Rosenthal identified the multi-let building as both a stable income opportunity and a way to support the continued vitality of a local high street.
"Despite wider market turbulence, the underlying fundamentals for secondary retail serving strong local areas remain compelling," said Rosenthal. "While it is important they do their research and choose widely, if investors focus on income and long-term sustainability, these assets continue to offer rewards.
"We're seeing stability return to non-prime locations where retail is convenience-led and embedded within the community. Vacancy levels have steadied since 2023, footfall is proving resilient, and consumers are increasingly gravitating towards local, value-oriented shopping. That creates a strong case for well-priced secondary stock such as this."
The acquisition reflects a broader theme gaining traction among experienced buyers, who are drawn to service-led retail assets that serve local communities and offer affordable entry points compared with prime locations.
Challenges facing the wider retail market, including declining footfall driven by online shopping and the continued growth of out-of-town retail parks, have made careful asset selection all the more critical.
Acting quickly when the right properties come to market is also essential. In this case, YBS Commercial Mortgages structured and completed funding across two connected transactions in under seven weeks from application, allowing the borrowers to secure the deal within a highly competitive timeframe.
Rosenthal added that lender support was central to making the strategy work. "Having a lender like YBS Commercial Mortgages, which genuinely understands how we operate and what we're trying to achieve, makes a material difference. Their ability to move quickly and work within tight deadlines gave us the confidence to proceed, knowing the funding process would align with the realities of property transactions."
Mark Setchell, senior relationship director at YBS Commercial Mortgages, led the deal through to completion. "When the right properties become available in the secondary retail market, there are really good deals to be had but time is of the essence when it comes to seizing them, and our role is to respond with certainty and pace in order to help investors succeed," he said.
"We worked closely with Yoel to understand his long-term objectives and help him secure appropriately structured funding in order to meet them. Delivering on the transaction within the required timeframe demonstrated the flexibility of our approach and the commitment of our teams to providing a smooth and efficient customer journey."
