Commercial Property Rental
Discussion
Hi,
I have been looking at commercial units in the north east for a friend of mine who would like expand his business. I decided to look at Eldon Square (Newcastle ) out of interest, how can anyone possibly make a living running a store in a shopping centre? The rent is crazy
For instance
Price/Rent: Base Rent: £67,500 pa
Status: Available
Sq ft: 1292
Price/Rent: Base Rent : £70,000 pa
Status: Available
Sq ft: 989
Sq m: 91.88
Price/Rent: Base Rent : £300,000 pa
Status: Available
Sq ft: 2072
Sq m: 192.49
Price/Rent: Base Rent : £164,000 pa
Status: Available
Sq ft: 1586
Sq m: 147.34
Price/Rent: Base Rent : £100,000 pa
Status: Available
Sq ft: 944
Sq m: 87.7
Do the big stores such as Next, John Lewis ect ect have deals because based on the costs above I can’t see how a store covering say 15,000+ Sq Ft could possibly cover the rent.
Am I missing something?
528
The rent reflects the footfall and resulting turnover - you can find a unit elsewhere significantly cheaper, but it won't have the same trade.
Small retailers always seem to complain about rents in shopping malls, as if they are compelled to pay them. They should really complain about the multiple retail chains which push up rents because they are willing to pay them, not landlords who will take what they can get, fairly obviously.
Small retailers always seem to complain about rents in shopping malls, as if they are compelled to pay them. They should really complain about the multiple retail chains which push up rents because they are willing to pay them, not landlords who will take what they can get, fairly obviously.
Have you been up to have a look around? Eldon Sq is about to open a massive new extension, but only Debenhams appears to be a "new" retailler. Nearly all the other shops seem to be moving from the old bit to the new bit. I suspect they'll have a lot of empty units shortly...... Make them an offer??
There is also Monument Mall, which has a few vacant units.
Add to that, there are some cracking shops to let on the main shopping streets.
There is also Monument Mall, which has a few vacant units.
Add to that, there are some cracking shops to let on the main shopping streets.
GuinnessMK said:
Have you been up to have a look around? Eldon Sq is about to open a massive new extension, but only Debenhams appears to be a "new" retailler. Nearly all the other shops seem to be moving from the old bit to the new bit. I suspect they'll have a lot of empty units shortly...... Make them an offer??
There is also Monument Mall, which has a few vacant units.
Add to that, there are some cracking shops to let on the main shopping streets.
Going this weekend..There is also Monument Mall, which has a few vacant units.
Add to that, there are some cracking shops to let on the main shopping streets.
There is a unit on Grey Street but I worry about the amount of passing trade.
The worry about the old bit is wil the passing trade die off? (I have not seen the plans yet but I suspect they may re develop that area)
Monument Mall is very quiet but I agree is a possibillity. Where abouts are you from?
528
Grey St is very dependant on location, top of the hill, by the Monument is OK, further down, near the bottom, hardly any passing trade.
You're right about Monument Mall being pretty quiet. But then I'd guess that since Zavvi closed at one end, and a certain sportswear retailer who isn't widely liked in the local having the upper floor, it's understandable.
I live in Newcastle, well about 5 minutes outside the city centre. Happy to meet up if you want some local eyes.
You're right about Monument Mall being pretty quiet. But then I'd guess that since Zavvi closed at one end, and a certain sportswear retailer who isn't widely liked in the local having the upper floor, it's understandable.
I live in Newcastle, well about 5 minutes outside the city centre. Happy to meet up if you want some local eyes.
The actual rents paid may bear no relation to the rents quoted! Best to employ a Chartered Surveyor to negotiate terms for you, they should more than pay for themselves.
Rents of retil premises are high and don't forget to add business rtaes, service charge etc. The fixed costs of a shop are very high, and margins low. There's a reason that retailers go bust!
The very big shops John Lewis, Debenhams, House of Fraser will have very good rental deals though!
Rents of retil premises are high and don't forget to add business rtaes, service charge etc. The fixed costs of a shop are very high, and margins low. There's a reason that retailers go bust!
The very big shops John Lewis, Debenhams, House of Fraser will have very good rental deals though!
..and it is a complete nightmare getting a lease with a big landlord like the owners of shopping centres. They will want personal guarantees, huge rental deposits, your left leg etc. And then just as you are about to sign and having spent a shed load on fees they will switch as someone like Costa will be in the wings. Steer clear...
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