Retail rents show signs of revival
RETAIL rents in the North West of England are recovering – with Burnley the star performer, according to the latest research from commercial agent Colliers International.
The firm’s latest Midsummer Retail Report shows that the rate of rental decline in the retail sector slowed to just 1% last year.
It said this reflected an improvement across the UK where prime retail rents rose by 1.8% – the first such increase since the recession, although rents are still 29% below a 2008 peak.
North West retail rents were down for the fourth consecutive year, but the region slightly outperformed the rest of the UK, excluding London, for the first time since 2011.
Colliers said the number of North West retail centres with stable rents rose from 12 in 2013 to 31, or 79%, in 2014. The number of centres with decreasing retail rents fell from 64% in 2013 to 18% in 2014. However, North West rents are still 19% below pre-recession levels at £81/sq ft.
Burnley had the best performing retail centre in the North West with a 7% increase, or £5, to £80/sq ft. Average retail rents in Liverpool, Manchester and Stockport remained unchanged at £265/sq ft, £250/sq ft and £100/sq ft respectively.
The worst performing centres were Ashton-under-Lyne, where retail rents dropped by 14% to £60/sq ft; Barrow-in-Furness, down 11% to £40/sq ft; and Salford, also down 11% to £40.
David Fox, head of retail in the North at Colliers, said: “The more optimistic outlook for the North West is borne out by our own market activity on behalf of retailer and landlord clients. Whilst there are still towns and secondary streets in bigger urban areas that have an uncertain future, new entrants into the North West retailing landscape and a proactive approach from landlords are enhancing the appeal of the region’s shopping destinations.”
