The UK retail property sector is showing clear signs of revival, with investor confidence rebounding after years of structural decline. According to the latest joint report from the British Property Federation and CoStar, retail investment is on the rise, driven by a perception that the market has bottomed out and is ready for reinvention. Notably, U.S. capital is playing a significant role in this resurgence, accounting for one-third of all UK commercial real estate investment in 2024. At the same time, shifting consumer habits — such as the continued growth of online shopping – are accelerating the evolution of the high street into a more experiential, mixed-use environment. For landlords, fund managers, and property professionals, these trends signal both new opportunities and the need for smarter asset strategies, underpinned by improved portfolio visibility and data-driven decision-making.
In this blog, we examine five of the most pressing challenges facing retail property stakeholders today and explore tech-enabled approaches to overcoming them.
1. Quantity Over Quality: Rethinking Retail Portfolios
The challenge:
The UK market is saturated with legacy retail stock that no longer meets the expectations of modern tenants or consumers. Analysis shows that 12% of shopping centres are at risk of disappearing due to high vacancy rates, poor EPC ratings and oversupply. While values have fallen by nearly 60%, investor appetite is returning, especially from U.S. capital looking to acquire well-located, high-potential assets.
How to overcome it:
Landlords need real-time visibility of their portfolio performance, helping them quickly identify high-risk units and reconfigure underperforming spaces. Software solutions such as Yardi’s Retail Manager allow teams to track vacancies, streamline re-leasing, and support faster decision-making on refurbishments, fit-outs, or changes to unit sizing.
2. Financial Over-Exposure: Knowing Who You’re Leasing To
The challenge:
In today’s retail landscape, numerous landlords lease to multiple brands without full visibility into group structures. For example, many retail groups operate multiple brands under a single corporate entity, making it difficult for landlords to see their total exposure across a portfolio. Without a clear picture of brand hierarchy, landlords risk over-exposure to a single retail group.
How to overcome it:
Modern asset managers need the ability to track leases, arrears and exposure at both brand and group levels. Yardi’s solutions give landlords a complete hierarchy view, enabling better risk management through detailed accounts receivable (AR) reporting by brand, tenant and parent company. With this data, landlords can proactively balance their leasing strategies and reduce concentration risk.
3. Rising Costs & Leasing Flexibility
The challenge:
Retailers are under growing pressure from rising wage bills (due to recent National Insurance increases), soaring utility costs and business rates. To stay viable, they’re demanding more flexible leasing structures — shorter terms, turnover-based rents, stepped payments and break clauses.
How to overcome it:
To meet tenant expectations while preserving value, landlords need to rethink traditional leasing models. Platforms such as Yardi support short-term leasing, turnover rents and custom deal workflows, enabling landlords to reduce deal cycles and better accommodate tenant needs. Moreover, intuitive property management software such as Yardi’s Retail Manager and CommercialCafe solutions provides the data visibility and process automation necessary to negotiate, monitor and optimise leasing outcomes at scale. With tools to configure lease terms, automate approvals and monitor performance, landlords can remain agile in a fast-changing market.
4. Managing Operational Complexity Across Multi-Tenant Retail Assets
The Challenge:
Retail environments, particularly large-scale or urban mixed-use assets, require continuous oversight to manage diverse tenancy mixes, changing footfall patterns and lease obligations. Traditional management approaches often fall short of providing the real-time visibility required to respond quickly and effectively.
How to overcome it:
To boost leasing performance and agility, retail property managers are turning to integrated digital solutions. Digitised floor plans improve tenant mix visibility and support smarter leasing and customer experience planning. Real-time risk and vacancy tools help identify issues early, enabling proactive lease restructuring. By unifying property, lease and facilities management, landlords can streamline operations and respond more effectively to market shifts.
5. Ensuring Compliance and Fabric Maintenance Across Portfolios
The Challenge:
As environmental and regulatory expectations increase, maintaining compliance and the physical integrity of retail assets (regardless of geographic distribution) has become a non-negotiable operational priority.
How to overcome it:
Automating maintenance with tools such as facility management systems and tenant portals streamlines inspections and compliance tasks. A centralised platform ensures key documents and alerts are always accessible, supporting audit readiness. Shifting to preventive maintenance also extends asset life and helps improve EPC ratings, protecting long-term portfolio value.
Turning Challenges into Opportunities: Harnessing Technology for Smarter Retail Property Management
While the commercial retail sector faces significant headwinds, these challenges are also catalysts for innovation and value creation. Owners and operators who embrace integrated, data-centric platforms, such as Yardi’s Commercial Suite, will be best positioned to respond to shifting market conditions, enhance operational agility and future-proof their portfolios.
Book a demo today to see how Yardi’s retail management platform can transform your commercial operations.