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Big drop in city's shop property rents
RETAIL property rents in Leeds have fallen by more than 16 per cent.
Property consultancy Colliers CRE predicts that nationwide retail rents will fall by 23 per cent by the end of 2010.
The firm reported that the worst economic recession since the 1930s has taken its toll on the retail sector with capital values for some properties falling by up to half, eradicating many investors' equity and making banks the owners of many of shopping centres and high streets.
At its peak at the end of 2006, Britain's retail sector was worth around 93 billion. This fell to 60 billion by the end of 2008 and Colliers CRE forecasts that it will fall to 48 billion by the end of 2009.
The reports said the North-East and Yorkshire and the Humber suffered from the highest falls in regional average prime rent, down 19.6 per cent and 16.1 per cent respectively.
"This is a reversal in the fortunes on last year when both appeared in the top three best performing regions with rental growth of more than two percent," said the report.
The report said the food sector is continuing to go from strength to strength, with Sainsbury's announcing it is planning to further expand in Yorkshire and the North to take on rivals Asda and Morrisons as it cashes in on record trading.
Greg Styles, retail director in Colliers CRE's Leeds office, is retained by Sainsbury's to advise on all its main store developments and acquisitions across the North.
He said: "Yorkshire is a key target area for Sainsbury's. We are advising them on a wide range of potential new stores including the Trinity Walk scheme in Wakefield where they are one of the two anchor tenants. Unfortunately, the scheme's fall into administration in March meant building work ground to a halt. However, we expect a new developer to be appointed shortly to take the scheme forward."
Yorkshire and the Humber as a region paints a mixed picture with centres such as Harrogate and Meadowhall still achieving the same net effective rental values in 2009 as 2008, being 150 per sq ft and 400 per sq ft respectively.
At the other end of the scale, towns such as Dewsbury and Scunthorpe have seen net effective rental values fall by 46.7 percent to 40 per sq ft and 41.2 percent to 50 per sq ft respectively.
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