Rental levels in pockets across the UK are on the rise, with towns and cities such as Oxford, Brighton and Colchester recording rents that exceed pre-2008 levels.
Research from property agent Jones Lang LaSalle found that rents in more than a third (39%) of the top 200 UK retail locations are at or exceed pre-crash levels in 2008.
London is still achieving record rental rates; however there are pockets of retail growth in areas outside the capital. Towns and cities including Guildford, Oxford, Bath, Brighton, Colchester, Winchester, Edinburgh and York are among those are performing well with rents surpassing peak levels prior to the collapse of the economy in 2008.
Tim Vallance, head of UK retail at Jones Lang LaSalle, said: “It is clear that across the UK rental growth in the short to medium term will be the exception rather than the rule. However, we shouldn’t forget there is current demand for over 25 million square feet of retail and leisure space in the UK and six years of incessant economic headwinds and exponential speed of change in shopping technology shouldn’t cloud the good growth stories about the high street that do exist.”
London rents continue to reach record levels as global retailers search for the best locations. Prime rents on New Bond Street now exceed £1,200 per sq ft, an increase of 80% since 2007. Notable Bond Street deals, which have driven this include Chanel’s £5 million lease for a flagship store and Belstaff’s 20-year lease for £3m per year.