Retail experts put money on increased uplift next year

The South West retail sector is beginning to bounce back with rent growth in key centres, increased activity levels and  further regional uplift predicted for 2015.

Figures from Colliers International’s 2014 Midsummer Retail Report  showed that although the  region as a whole had suffered its third straight year of rental declines,   the 3.1 per cent slip is slowing down compared with previous years.

The Midsummer Retail Report looks at some 421 centres across the UK and is widely recognised as the retail’s sector’s leading overview of out of town and High Street shopping trends.

Colliers International retail specialist Nick Turk said the report demonstrated that although the national picture was improving the recovery remained patchy across the region with the gap between the best and worst performing centres continuing to widen.

Nick Turk said:  “Once again the popular centres have seen prime rental levels increase by anything between three and ten per cent.

“This really is a remarkable period of change for the retail world and while we are not out of the woods yet there are positive signs on the horizon.

“Ripples of prosperity are coming down the M4 and A303 and we are looking forward to more prosperity in 2015.

“Rental growth is still being reckoned against a fairly high peak whereas activity is the main focus of attention and this is definitely on the increase.”

Retail performance across the South West’s leading visitor destinations has revealed an ever widening gap between the best and worst performing centres.

Retail rentals in Torquay had jumped ten per cent, with Marlborough (7.1) and Salisbury (5.3 per cent)  performing  well and Truro (4.8 per cent) making the South West top five.

There was a 2.9 per cent increase in rents in Exeter while Plymouth held steady at 0 per cent.

Yeovil also held steady at 0 per cent while Taunton saw a decline of 5.3 per cent.

Newton Abbot in Devon also saw rental levels drop 13.6 per cent . Popular South West visitor destinations  Bournemouth, Christchurch and Falmouth all saw rentals drop by 11.1 per cent.

Nick Turk said: “Average rents in the South West remain 24 per cent below 2008 levels. This has mainly been caused by the rise in the number of centres with falling rents from  17 to 18.

Overall rental decline of 3.1 per cent for 2014 reflects a marginal improvement for South West but remains third consecutive year of rental decline since 2011.

Colliers International’s figures are based on the cost per square foot of renting prime location retail property.

For further details contact Nick Turk, Retail, Colliers International, on  0117 917 2000.