A survey by chartered surveyor Hartnell Taylor Cook found that four out of 10 landlords believe they will have to acquiesce over monthly rents, which they say will become the norm for the sector.
The concern among landlords has been stoked by the latest meeting between them and retailers last week, which resulted in a subcommittee being formed to take the issue forward.
Hartnell Taylor Cook retail agency partner Andrew Bradley said: “It’s slowly starting to sink in for landlords and the various meetings have definitely fanned the flames. Some landlords will be more institutionalised and won’t deviate, but others will be more pragmatic about it. It’s only when times are tightest and toughest that people are willing to change.
“The relationship between retailers and landlords has had its ups and downs, but people’s perceptions change when the environment changes.”
Bhs owner Sir Philip Green and Land Securities chief executive Francis Salway are understood to have been chosen to sit on the subcommittee, along with a handful of retailers and landlords.
The research by Hartnell Taylor Cook also found that a third of landlords have been forced to shelve retail-led schemes that were due to open over the next five to eight years.
“We’ve seen a number of schemes put on hold,” said Bradley. “But hopefully the good schemes will still survive and some good quality retail space will come onto the market in better times. The bellwethers of the high street will still be there and they’ll vote with their feet in terms of which schemes they go into.”
Landlords also face a tougher time in the lease negotiation process as retailers become increasingly forceful in their demands. Nine out of 10 landlords said they have had to raise the level of incentives to persuade tenants to take space in their existing developments.
No comments yet