Insurance News Archive

High-rent retail markets increasing

UK retail parks which charge £25 or more per square foot are spreading, according to new figures.

Compared to last year there has been a three per cent rise in the number of these high-rent properties and they now form a fifth of the market, figures in the Definitive Guide to Retail and Leisure Parks 2007 show.

This suggests that prime retail space is increasing across the country due to the efforts of commercial property investors, while additionally the growth in the sector has opened up the range of rent costs offering retailers more choice.

Rents now can be found between just £6 per square foot up to £95.

However, Mat Oakley of Savills warned that despite these figures, demand could be waning for retail park space.

"While we are seeing many retailers leaving the high street in favour of retail parks, where rents are more competitive, we are also witnessing existing large space occupiers at retail parks changing priorities in a bid to control rent bills," he told Property Executive.

"In fact, 70 per cent of the current demand at retail parks is for units of less than 12,000 sq ft, which has resulted in landlords finding it harder to let larger stores."

Mr Oakley did however say that Savills expects the vacancy rate to remain steady at eight per cent in the next year.

12 Apr 2007