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Executive Summary
The worst economic recession since the 1930s has obviously taken its toll with capital values for some properties having fallen by up to half, eradicating many investors equity and making the Banks the owners of many of our shopping centre’s and high streets. The flood of retail failures prior to and shortly after Christmas 2008 has been stemmed and although few would suggest there will not be further casualties, occupier demand is surprisingly buoyant. The issue is the terms upon which retailers are prepared to let a unit.
Landlords appear to have learnt the lesson of the early 1990s, in part forced upon them by the Government’s implementation of full vacant rate payments and are now prepared to keep units occupied almost on any terms. Rent free periods and/or incentives equal to two or three years are common place with there being extreme examples of five or even six years rent free being accepted. Short-term leases on a turnover basis are often being entered into but at least the occupancy of a unit helps maintain vibrancy and a feeling of wellbeing in our shopping centres and high streets. READ MORE....
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