An interventionist model against empty shops in Aberdeen

As debates over city centre regeneration continue across the UK, the Scottish city of Aberdeen is running a joint programme with the council, property agents, landlords, businesses and volunteers to reduce empty shops in the city centre. On Union Street, 57 of 198 units were vacant in 2023; in the latest update, 33 units have been re-let and 14 more are in the leasing process. However, 20 additional units became vacant after the programme was launched.

On the financial side, the programme offers council grants for fit-outs and adaptations for new businesses, along with a two-year business rates relief. Suitable properties and incentives are gathered on a single website, while cleaning and painting empty units is also being used to speed up the leasing process.

The numbers show the problem is structural

According to Green Street data, one in every eight properties on Britain’s main streets is empty. Two-thirds of city centre experts surveyed by Revo and Lambert Smith Hampton believe there is still 20% to 40% too much retail space.

  • The main factors weakening demand are online shopping and out-of-town retail parks.
  • On the supply side, the need to refurbish older buildings, rising staffing costs and business rates stand out.
  • The fact that properties are owned by many different investors also slows decision-making.

Experts say not all vacant units will be filled by retail alone. For that reason, there is growing discussion about bringing more arts, entertainment, health and wellbeing uses into city centres, while upper floors are also being considered for reuse as homes or offices.

Interest rates and construction costs are limiting investment appetite

Aberdeen City Council is setting aside tens of millions of pounds to make the city centre attractive again. A budget of £40 million has been allocated for a new indoor food and drink market planned for the city, with funding coming from the council and the UK Levelling Up Fund.

New leasing tools are also being introduced in England

Lambert Smith Hampton director Steve Norris says high interest rates and rising construction costs are making it harder to deliver new housing and major regeneration schemes. The new leasing auction model in England, which can force commercial units that have been vacant for at least a year to be offered to tenants, is already producing early results in some councils; Bassetlaw Council said it has helped lease or attract offers for more than 30 shops.

Early commercial activity is visible on the ground

In Aberdeen, council support was used in 2024 to help a fashion boutique move to Union Street. In addition, plans for a national entertainment brand to reuse the former Debenhams space at Trinity Shopping Centre, purchased in 2023, are strengthening expectations of higher visitor traffic and rental demand in the city centre.