Property News - Sutton becomes London's best-value retail location

West Ealing, Sutton, Ilford and Bromley are among London's best-value retail locations, according to research from Colliers CRE.

But retailers in Stoke Newington, Greenwich, Notting Hill Gate and Brompton Cross may well be paying too much rent for the turnover they can generate.

The research correlates CCRE's data on in-town prime retail rents against data from the Office of the Deputy Prime Minister on the retail turnover of individual centres. It then divides London's shopping pitches into 'turnover heavy' and 'rent heavy locations'.

In 'turnover heavy' locations there is a high turnover relative to the prime rent.

In contrast, 'rent heavy' locations have a low turnover relative to the prime rent.

Bromley, for example, has a prime rent of£220 zone A, and as a location generates total turnover of£849,000 per£ zone A. But Brompton Cross in Kensington commands similar rents at£200 zone A although it only generates sales of£147,000 per£ zone A.

CCRE breaks London's shopping centres into four bands with rents from£0 to£50 zone A,£51 to£100,£101 to£150 and from£151 upwards. What applies at the top of the market also happens in some of London's cheaper pitches. For instance West Ealing only has a prime rent of£40 zone A, yet it generates massive sales at£1.5 million per£ zone A, while Blackheath, with similar rents at£55 zone A only generates sales of£287 per£ zone A.

On CCRE's analysis, Sutton emerges as the best-value pitch in the capital, with top rents of£100 zone A, but sales of£2.2 million per£ zone A.

And Greenwich fares worst with rent of£90 zone A, but sales of just£71,000 per£ zone A.