Prime retail rents hold up in the capital but vary elsewhere
Research from Colliers International has shown that although the Central London retail property market is staying resilient during the downturn, the rest of the UK is not faring quite so well.
The research by the commercial property agents found that while London, and the West End in particular, continued to buck the trendby by achieving healthy rental growth over the 12 months to June 2011, the Midlands suffered significant falls in rental values of over 20% in a number of locations.
The report focuses on prime retail rents, one of the key indicators of the relative health of the retail market, and provides an analysis of the change in values over the 12 months to June 2011 on a national and regional basis.
The publication highlights the best and worst performers in terms of rental growth and assesses the outlook for the market as retailers continue to feel the impact of high inflation, falling disposable incomes and low consumer confidence.
Sarah Banfield, associate director for research & forecasting at Colliers said: “Our prime rents analysis highlights considerable variations in performance in different parts of Great Britain.
“It is clear that outside the capital, the retail market continues to show significant signs of fragility.
“Effective cost management is a key priority for the remainder of 2011 and retailers need to be able to recognise the warning signs and adjust their cost bases quickly.”
Banfield added: “The market is going through a long term structural change and, at present, it remains a difficult trading environment. Retailers that fail to acknowledge this and react accordingly could find themselves in the same fate as Jane Norman and TJ Hughes.”
