Altrincham Shop Rentals Drop

July 3, 2012 8:28 am

Retail Rents

New studies have come out showing that in the UK shop rents are dropping due to the lack of consumer buying, and unsurprisingly Altrincham has one of the biggest drops.

Colliers International have produced their Midsummer Retail Report which details any changes in rental agreements for retail across the UK. The report states that in the UK retail rents have dropped by 4.5% this year (12 months to June 2012). These figures seem to reflect the economic downturn where retailers are feeling the squeeze as consumers spend less in high street shops.

4.5% is quite a big drop when you take into account most other things are on the rise, but this is the average in the UK. Looking closer into the study you can see that in the North West the drop has been much more significant and Altrincham has had a 12.5% drop in rental rates for retailers.

The biggest drop is in Rochdale where the rates have fallen by 13% but Altrincham is not far behind, and other North West towns in the region such as Macclesfield have seen a 7% drop in retail rent prices.

It seems to be the towns that have been hit hardest as the cities that are still getting a high footfall and tourism have seen less effects with their retail spaces staying stable at around £250 per square foot in Manchester City and Chester has even seen a rise of around 2%.

Greg Styles, head of retail development at Colliers International, 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.

Rents in the larger centres and regional hubs have on the whole, remained robust but, of these centres, only Chester enjoyed marked rental growth. The most significant levels of rental decline have been in peripheral secondary towns in the north west. The worst-performing of these towns have been Birkenhead and Whitehaven, which have seen falls of 20 and 25 per cent respectively.”

 

Although retailers are struggling the North West is seeing a lot more bars and restaurants opening up, and Altrincham is no exception. New leases for restaurants and coffee shops will help boost the town and bring more visitors and consumers into the area to spend in the shops.

What do you think?

Are these drops in rental prices for retail a blessing in disguise for Altrincham making retail spaces more affordable for independents? Or are they a factor of the economic decline showing these are the areas that will not get the customers? Is the Trafford Centre to blame or was it inevitable?

We love to hear your thoughts so please comment below…


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