King Street’s appeal boosted by falling rents

MANCHESTER’S historic fashion boulevard, King Street, is enjoying a return to form as its rents have reached more realistic levels, according to property consultancy Savills.

The firm said that since the opening of additional premium fashion space at New Cathedral Street in 2003 and at the extended Arndale centre King St has had to contend with increase levels of voids and a knock-on decline in rents. The headline zone A rents landlords which landlords could charge for space on King Street has dropped from around £220 per sq ft to its current level of £125-£150 per sq ft.

Peter Barker, retail director at Savills, argues that the re-pricing of properties on the street had attracted a new wave of tenants  – including Charles Tyrwhitt, Peter Maturi and Face. 

“With an ideal position in Manchester’s retail hub and a strong anchor in Kendals, King Street holds the right fundamentals and has always possessed good potential,” he said. 
 
“King Street was showing signs of decline in the period following the opening of New Cathedral Street and the Arndale extension. However, it is now benefiting from its close proximity to these areas offering competitive rents in line with market expectations. King Street’s rejuvenation has attracted new national tenants that are not already represented in Manchester, which is obviously a great boost for the city.”

Barker adds that landlords are also paying more attention to St Ann’s Square, which had almost become relegated to a cut-through between King Street and New Cathedral Street.

The redevelopment of the former Disney store brought in retailers such as Henri Lloyd, Fat Face, Camper and Links of London, while Gap is rumoured to be renewing its lease and Austin Reed is also believed to be taking space.
 
In addition, Barker said that Savills is working with a private client to create space for a new flagship fashion store at 12–20 St Ann’s Square which will total 24,000 sq ft over four floors. The firm is in talks with two retailers who are interested in the space.

“Both landlords and retailers are now recognising its potential as a retail destination,” he said.