Retail rental rates in North West England have continued to plummet according to a report by Colliers International. Average rental rates fell by 4.5 per cent in the last 12 months, which is 3.3 per cent higher than the national average.
The worst affected areas in the North West include Altrincham, Macclesfield, Rochdale, Wigan and Stockport with a drop in rents between 13 per cent and 6.3 per cent.
Speaking of the retail rental rates decline in the area, Colliers Head of Retail Development, Greg Styles said: “Retail rents in the north west have continued to fall in line with the national trend, but have again done so at a greater rate of decline.
“The most significant levels of rental decline have been in peripheral secondary towns in the north west.”
However, some cities in the area have seen an increase in rents with Manchester remaining stead at £250 a sq ft and Chester reporting an increase in rental rates.
“Rents in the larger centres and regional hubs have on the whole, remained robust but, of these centres, only Chester enjoyed marked rental growth,” Mr Styles added.
According to Colliers, one of the reasons for the drop in retail rent rates is due to consumer spending putting pressure on high street and shopping centre retailers as consumers continue to keep hold of their disposable income. This forces retail commercial properties to lower their prices just to cover the rent.
The fact that a company cannot afford to keep hold of their premises leads to landlords having to lower rental rates just to fill the commercial property.
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