Rent prices plunge as councils try to fill shops
Rent prices at shops across the region have plunged over the past 12 months as councils try to entice businesses in and revive their flagging high streets, figures revealed today.
Rent prices at shops across the region have plunged over the past 12 months as councils try to entice businesses in and revive their flagging high streets, figures revealed today.
More than half of the 33 shopping centres and high streets surveyed across the region reported a drop in shop rents – with some businesses saving as much as 15 per cent. It comes just days after the Express & Star revealed almost £400 million is being pumped into revitalising high streets situated across the Black Country and Staffordshire region.
With empty shop fronts and boarded-up windows now a staple of high streets in the region, prices have been driven down as councils draw up multi-million pound plans to attract major brands and bring in more shoppers.
Lichfield city centre was the only high street to report a rise in rents, with shop owners now paying £80 per sq ft – 6.7 per cent up on last year. The research, carried out by Birmingham-based real estate firm Colliers International, also revealed out-of-town malls such as the Merry Hill Shopping Centre – which charges £240 per sq ft – were still bringing in the higher rents.
Nick Round, head of shopping centre leasing, said traditional high streets were being forced to reduce their fees to compete with the popular privately-run malls.
He said: "Traditional high streets just can't compete. They lack the variety of stores, are often difficult to access and expensive to park in and simply just aren't exciting enough.
"Shoppers now expect a complete leisure experience, incorporating a wide variety of entertainment, food, drink and retail brands."
Overall, the average rent in the region is now £90.8 per sq ft, compared to the national average of £109.80.
Wolverhampton – which charges rents of £95 per sq ft – West Bromwich and Halesowen, both of which charge £50, all remained the same since last year.
Rents in Stafford fell 7.1 per cent to £65 per sq ft, while Cannock was down 9.1 per cent to £50 and Walsall fell 5.9 per cent to £80. The biggest drop was in Dudley, where rents fell 14.3 per cent to £30 per sq ft.
