RETAIL
Lease Expense Management for shopping centres and out of town retail.
- The challenge
Retail occupiers continue to face difficult trading conditions with both inflation and increases to National Minimum Wage influencing costs. This is impacting on all service charge headings; labour costs can be over half of all expenditure, so site management, cleaning, security, M&E and fabric repairs are all increasing at or above inflation. Major works continue to feature as a significant cost concern, particularly in retail parks, when expenditure tends to be more variable year on year.
Shopping Centre Service Charge budgets are on average increasing by 4.5% in 2026, so it continues to be important to identify opportunities for cost saving, particularly in service charge and other lease expenses.
The UK retail market is highly competitive, but footfall to physical stores in premium Schemes has increased recently and consumer confidence has been showing signs of improvement. Retailers are balancing customers sustainability requirements with investment in both the physical and digital shopping experience, when cost of living is still putting pressure on spending power for consumers.
By identifying areas of cost reduction across your portfolio and realising quick savings opportunities, more cash will be available for investment back into the business.
- Solution
Assure Consulting is at the forefront of lease expense management for shopping centres and out of town retail. Retailers work with Assure Consulting’s team of experts to gain control and value for money from recurring financial liabilities including service charges and insurance recharges.
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Assure Index - UK Retail /shopping Parks 2026
Out of town Retail Parks service charges are increasing at a rate of 7.7% (Q4 2026), this upward pressure covers many cost categories. Soft Services and Management costs increased significantly reflecting on going challenges with the cost of employing staff. Major Works are also still increasing, but this year the most significant increases are in the lowest Tier Schemes. Read our latest Index.
- Assure Index - uk Shopping Centres 2026
Shopping Centre service charge budgets continue to increase above the rate of RPI inflation at 4.5% (Q4 2026), although increases are lower than in 2025. There is continued upward pressure on Staff Costs related to Cleaning, Security and M & E. Increases in expenditure on these headings and Major Works are now being seen most significantly in the middle tier Schemes. Read our latest Index.
Individual surveyors were taking an inconsistent approach to service charge management. This ranged from spending little time and authorising payments without question, to spending too much time on low value issues.
We now have control over our service charge spend and the comfort that each payment is being correctly and consistently challenged, with the additional benefit that our surveyors can focus their time on high-value, business critical issues.
The costs/return equation shows a clear benefit without even taking the reduced management time into account.