The future of high street property investment? Think activities, not attire

The high-street, collectively, needs to take a long hard look in the mirror. Much-missed freedom is back, but pre-pandemic shopping practices probably won’t be seen again, at least for a while. We embraced the online world like never before over the last couple of years. For many, the allure of physical shopping trips just isn’t there anymore. Even though we all claimed we couldn’t wait to get out of our pyjamas and back into the real world, online purchases are still much higher than what they were in 2019.

But we still hold a soft spot for our high streets. We hate to see them suffering. So, what can be done to bring them back to life? I’m thinking we need a reimagining of what the high street is for. Shoppers can get their goods online with minimal effort, but they can’t download a fun day out. Experiences tend to make us happier than possessions, while also being much more memorable.

To this day, my favourite birthday gift involved paid actors and a make-believe apocalypse. For our evening plans, we pretended to be soldiers training for a looming zombie attack. After rigorous shooting drills (paintballs) and assault courses (climbing over a few small walls) our sergeant lined us up.

We were ordered to shout “we will not get bit!” three times. Following the final war cry, the lights went black. Screams rang out from every direction. The zombies had broken in and we had to fight our way out. This all happened nearly a decade ago, but I can still remember how my heart pounded as I desperately tried not to be eaten.

Was this a weird present? Probably. But it was stupidly fun, and it filled me with more joy than any department store gift card ever did. I’m not alone here either. Younger generations appear to have clear preferences for experiences over “stuff”. So much so that certain sectors are feeling the pinch.

I’ve lost track of how many industries millennials and gen z have “killed” but a few, such as diamonds or vehicle manufacturing, are telling. Stretched budgets undoubtedly play a part, but I’m betting the nation’s 20-somethings would much rather spend their money on holidays, rather than the latest car model.

There’s room for the high street to adapt to these changing priorities. Evidence of this has already been seen. In recent years, several unique businesses have popped up across major cities. Consumers can now enjoy axe throwing, escape rooms and crazy golf alongside their trips to bars or restaurants. Some may assume these options are too niche to be worthwhile. But if you were to glance around these venues on a Friday night, chances are you’d see rooms filled with grinning, youthful faces.

Commercial property investors should probably keep this in mind. Several efforts are already underway to bring the high street back to life. There’s plenty of scope for empty offices and stores to be converted into something new. But rather than doing them up for a clothing or stationary stores, investors could instead consider climbing walls or virtual gaming. Or, if they’re feeling brave, a bunker for a zombie uprising.?