City-centre project The redevelopment of the Broadmead centre is already affecting lettings, rents and investmentin the city. Stacey Meadwell reports
Having recovered from the embarrassment of being forced to drop the name Merchants Quarter from its 1m sq ft redevelopment of the Broadmead centre, the Bristol Alliance is forging ahead with the city-centre project.
The opening is not scheduled for two years, but the scheme is already 50% let, with new names to the city, such as Harvey Nichols, Zara and Bershka, and higher headline rents.
Deals with zone As of £250 per sq ft are putting Bristol’s current top rents of £185 per sq ft in the shade.
Any large scheme is going to cause a stir. Most retailers and landlords will be holding their breath to see how the alliance’s development affects the market. But it is not a time for putting heads in the sand.
“If the new scheme wasn’t coming on, you could look at a unit in the existing Broadmead with a much more comfortable feel of how it will develop rents-wise,” says James Woodard at King Sturge in Bristol. “However, if you are looking at units outside the scheme now, you have to take future rent reviews on board.”
The affect of the redevelopment will, it is hoped, spread to the investment market. Indeed, to say that investment in the city has been quiet would be an understatement. John Sisman, investment partner at Knight Frank, says there has been a historic lack of investment transactions in the area, but with the new Broadmead stimulating interest and lettings, Sisman believes the time could be ripe for activity.
Secondary areas
“Lettings deals are being done within the redevelopment at the moment, and its extent is clear. You can look around the rest of the prime and secondary areas and see rental growth,” he says.
This, he believes, will prove attractive to investors, and he is tipping the stretch of retail along Horsefare from the edge of the new Broadmead towards Debenhams and the main corner block, which form the heart of the traditional Broadmead area, as most likely to see investment deals.
Out of town, Capital Shopping Centre’s and Prudential’s Cribbs Causeway shopping centre, which opened in 1998, is to undergo a £4.8m refurbishment. Their out-of-town retail park saw the opening of the UK’s largest B&Q store last month. But agent GVA Grimley admits there have been problems.
“Cribbs Causeway suffered casualties in the downturn, but these have been replaced, enabling us to freshen up the tenant mix,” says David Mace, regional senior partner with the agency.
Overall, there is a great deal to be excited about for the property market. The redevelopment of Broadmead is putting Bristol back on the map, stimulating interest from retailers and investors.
“If you take a wider view, the new Broadmead will strengthen Bristol as a regional centre. The old Broadmead wasn’t something to be proud of,” says Mace.
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Top performing centres, May 05 to May 06 |
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Bristol‘s secondary locations have performed the best |
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Centre |
05 rent (£ per sq ft) |
06 rent* (£ per sq ft) |
Rental growth (%) |
|
Ringwood |
40 |
55 |
37.5 |
|
Bedminster |
25 |
30 |
20 |
|
Chippenham |
60 |
70 |
16.7 |
|
Stroud |
35 |
40 |
14.3 |
|
Bristol, Whiteladies Road |
40 |
45 |
12.5 |
|
Plymouth |
160 |
180 |
12.5 |
|
Boscombe |
45 |
50 |
11.1 |
|
Bridgwater |
45 |
50 |
11.1 |
|
St. Austell |
45 |
50 |
11.1 |
|
Penzance |
55 |
60 |
9.1 |
|
St Ives |
55 |
60 |
9.1 |
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Source: Colliers CRE *To end of April |
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