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Retail rent drop offers high street a lifeline

Published: 7 January 2009
Rents fall for first time in 15 years in 2008 with predictions that they will not return to growth for several years.
Retail rent drop offers high street a lifeline
Retail rents fell 0.4% last year - the first annual fall since 1993 when they dropped 1.9%.

Property Consultant King Sturge issued its 'property predictions' stating that retail rents will fall again in 2009, by 6%, with no sign of returning to growth until 2013, when it predicts they will increase by 1.6%.

The decline will prove beneficial to many retailers struggling in tough trading conditions, offering stores more bargaining power with landlords over rent agreements. King Sturge said: "It's a tenant's market. Occupiers have the stronger hand."

King Sturge said that more than 90% of the 2.5m sq ft of new shopping centre space that will open in 2009 will be leased. However, it added that leases will be on more favourable terms for tenants, incorporating monthly rent payments, rent-free periods, break clauses and 'generous incentives' such as shop fitting fees.

In recent weeks, a number of big retailers, including DIY giant Kingfisher and department store chain House of Fraser, have pushed landlords for fairer rent terms and monthly payments to help ease the burden and free up cash flow during the economic crisis.

King Sturge head of retail research Stephen Springham said: "Most retailers will push for monthly rents. It is a bit more than retailers whingeing - 12 payments a year does give you a lot more fluidity. Landlords will have to back down on a number of issues."


Published prior to March 2014
By MogusergejerS
Hello everyone!
All of the recent news stories of the down fall of the economy and loss of jobs has been driving most americans nuts!
I began looking sites for some way to get help and found that the government gives free grants.
What I would like to know is.... does anyone know what site I can find free grant applications at?

Thank You!


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