Retail rents decline

RETAIL rents across the North West fell by an average of 4.5% in 2011, although major centres such as Manchester and Liverpool held their value.

Figures from Colliers International’s Midsummer Retail Report found that although major centres such as Manchester and Liverpool held their value, some of the peripheral areas saw rents decline quite rapidly.

In-town Zone A rents in Liverpool remained the highest in the region, thanks to Grosvenor’s Liverpool One scheme – at £265 per sq ft.

Rents in Manchester’s retail core also remained steady at £250 per sq ft, but outlying towns continued to witness steady rental declines.

The worst-hit area was Whitehaven, which witnessed a 25% drop in retail rents to £30 per sq ft. Rents also fell by 20% in Birkenhead to £80 per sq ft, by 13.3% in Rochdale to £65 per sq ft and by 11.5% in Preston to £115 per sq ft.

Chester, Ellesmere Port and Widnes were the three towns which witnessed an uplift in rents, to £200 (up 2.6%), £45 (up 12.5%)  and £55 (up 10%) respectively.

Greg Styles, head of retail development at Colliers International, said: “Retail rents in the North West have continued to fall in line with the national trend, but have again done so at a greater rate of decline.  

“Rents in the larger centres and regional hubs have on the whole remained robust but of these centres, only Chester enjoyed marked rental growth.  

“The recovery in Widnes is in part because of the improved tenant line up for the town following the opening of the 150,000 sq ft Widnes Shopping Park in 2010.

Mr Styles added that the 20% fall in rents in Birkenhead had been attributed to the opening of a new 90,000 sq ft Asda foodstore at the end of 2011.”