Everyone loves a scandal And so stories of the "Death of the High Street "are always headline news in both the regular press record (both Tabloid and Broadsheet) and of course business publications. But is it really true, and if it isn't, is the High Street at best in mortal decline?
Everyone loves a scandal
And so stories of the “Death of the High Street “are always headline news in both the regular press record (both Tabloid and Broadsheet) and of course business publications. But is it really true, and if it isn’t, is the High Street at best in mortal decline?
We certainly had some shake ups recently. Store 21 has gone into liquidation very recently. In the meantime both Brantano shoes and Jones the Bootmaker went into Administration, as has Jaeger (that’s mucked up the author’s preferred suits). So who will be next?
Whoever or whatever is next, it’s very clear that a number of factors are influencing retailers, and it’s time for landlords to be realistic. On behalf of one landlord, I’ve just accepted a £4000 reduction in annual rent on the shop in Whitehaven (I’ve also negotiated £4,000 off a rent, together with a rent free and a refurbishment, on behalf of a Tenant in Chester le Street) and an increase in McDonald’s has been limited by the simple question:
I asked my biggest client why they engage me, and they said "You tell us what we need to hear, not what they want to hear".
Philip Bowe, BIV Bowes“Can the business sustain this rent?”
As implied by the recent work outlined above (and I’m entrusted with rents across a commercial portfolio worth in excess of £15 million) I’m not here just to fight the tenants’ corner. However I am here to say that no amount of analysis of rents based on historic trading or comparables will outweigh the simple question above and below –
“Can the business sustain this rent?”
If you are a tenant, before you agree a rent (even if your surveyor told you it is worth it), take a long hard look at the situation. If you had reduce prices to maintain sales quantities, or your sales volumes were dropping and you can’t reduce prices, how long would you survive? Really look at your break even point and see how far away from that that you really are. Make sure you have an adequate comfort zone.’
I asked my biggest client why they engage me, and they said “You tell us what we need to hear, not what they want to hear”.
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