Is 2026 the Year We Finally Make Better Use of Empty Retail Sites?

For years, the UK’s retail sector has been changing. Some high streets and older shopping areas have continued to decline, while retail parks have held up slightly better. But by 2025, one thing became clear: many shops, parades and retail parks aren’t struggling because of short-term problems. They’re struggling because the way we shop has changed, meaning the old formats may no longer fit modern needs.

This has pushed landlords, developers and councils to ask a new question. Instead of “Will retail bounce back?”, people are now wondering: “How else could this land be used?”

Why things are changing now

The usual explanations for retail decline - online shopping and high-street closures - still run true. But in 2025, two other pressures became equally as important:

• Councils are under pressure to explain why empty retail sites remain unused, especially when housing shortages grow and town centres struggle.

• Developers are finding it harder to make traditional retail schemes financially viable due to rising costs and tighter margins.
  

Put together, these pressures could mean the conversational focus is no longer regarding whether we can repurpose retail sites but what happens if we don’t.

Why retail sites are suddenly looking attractive again

Larger retail sites have several advantages that many other plots don’t:

• Bigger floor plan

• Good road access and parking

• More modern buildings that can be adapted easier than older industrial sites

Because of this, they’re now being considered for many different uses, including:

• Homes and mixed-use neighbourhoods

• Last-mile logistics and delivery centres

• NHS and private medical centres

• Student accommodation

• Gyms, leisure operators and cultural spaces
  

That being said, it’s not just property developers driving this change. Healthcare providers, BTR operators, logistics companies and education providers are increasingly interested in these sites too. This shows repurposing is becoming a planned strategy, rather than a fallback when shops close.

Planning in 2026: tougher questions, clearer direction

Planning policy is still evolving, but the Government has made some priorities

clearer:

• Support for higher-density developments

• Focus on well-connected, previously developed land

• Stronger oversight of major housing schemes
  

This means retail sites often fit well with the Government’s goals. But councils will be more meticulous when looking into:

• Environmental impact

• Transport and traffic

• Affordable housing

• Overall design quality
  

It doesn’t slow the process down, but it does mean proposals have to be strong, well-justified and community focused.

The legal issues that can make or break a project

Turning a retail site into something new is rarely a simple task. Many of these sites come with older legal agreements that no longer suit modern uses. Common challenges include:

• Restrictions when changing the use of the land

• Complicated access or service-yard arrangements

• Tenant rights that limit redevelopment

• Long leases that are costly to unwind

• Overage clauses from earlier projects

• Multiple landlords or owners within the same retail park
  

The projects that move quickest are usually the ones where these issues are identified and dealt with early - before design work or funding negotiations proceed.

Timing is also of the essence. Redevelopment often requires phased lease surrenders and careful coordination. Getting this wrong could cause delays in the project by years.

So, will 2026 be the year retail repurposing really picks up?

It’s possible - but not because the retail industry is collapsing. Retail is settling into a new normal, some formats are stabilising, others are not. What’s becoming clear is that many retail sites now occupy land that could be put to better use.

Trends for 2026 suggest:

• Councils will push harder to unlock underused land

• Operators in other sectors actively want large, well-located plots

• More mixed-use schemes will come forward

• Investors will take a longer-term approach to regeneration
  

Repurposing is no longer just a reaction to empty shops. It’s becoming part of wider planning and regeneration strategies.

How Salehs Solicitors help clients navigate these projects

Salehs supports landlords, investors and developers from the earliest stages of a repurposing scheme. Typical areas of advice include:

• Site assembly and acquisition

• Identifying and resolving legal restrictions

• Negotiating lease surrenders and re-gears

• Drafting collaboration and development agreements

• Planning strategy support

• Funding and documentation for mixed-use schemes
  

Our focus is on spotting issues early and unblocking challenges before they affect cost, timing or viability.

Conclusion: a real opportunity - if handled carefully

2026 could be an important year for the repurposing of retail sites. Many sites are well-located and offer valuable space for homes, logistics, healthcare and community uses. But there are challenges that could arise - legal, financial and planning - this means success depends on early planning and gaining the right professional advice. For owners willing to think beyond traditional retail formats, there are genuine opportunities – but this will only work if the correct groundwork is done beforehand.