Three things are clear from EGi’s look back at retail over the past 15 years. Retailers want shorter leases, cheaper rents and smaller space
Figures compiled from EGi’s database reveal the extent of the UK’s shrinking retail market. A look back at lease lengths, average rents and the average size of shops over the 1997 to 2012 period shows a general trend downwards. Lease lengths appear to have peaked in 1998 at just over 15 years. At the end of 2012, they averaged just 9.44 years. Leases have been below 10 years since the effects of the credit crunch really started to hit in 2009.
Rents being paid by retailers were at their highest between 2000 and 2005 when they topped out at £70,771 and bottomed out at close to £58,000. They now average just over £40,000, a 13% drop on 2011 and the lowest level in 15 years.
Average shop sizes are also on the decline, with figures for last year showing a 12% drop as sizes fell from 3,117 sq ft in 2011 to 2,748 sq ft. Shop size peaked between 1999 and 2003, when it averaged around 5,000 sq ft.
Three things are clear from EGi’s look back at retail over the past 15 years. Retailers want shorter leases, cheaper rents and smaller space Figures compiled from EGi’s database reveal the extent of the UK’s shrinking retail market. A look back at lease lengths, average rents and the average size of shops over the 1997 to 2012 period shows a general trend downwards. Lease lengths appear to have peaked in 1998 at just over 15 years. At the end of 2012, they averaged just 9.44 years. Leases have been below 10 years since the effects of the credit crunch really started to hit in 2009. Rents being paid by retailers were at their highest between 2000 and 2005 when they topped out at £70,771 and bottomed out at close to £58,000. They now average just over £40,000, a 13% drop on 2011 and the lowest level in 15 years. Average shop sizes are also on the decline, with figures for last year showing a 12% drop as sizes fell from 3,117 sq ft in 2011 to 2,748 sq ft. Shop size peaked between 1999 and 2003, when it averaged around 5,000 sq ft. UK retail market Year Average lease length (years) Average rent Average size of unit (sq ft) 1997 14.37 £49,781 3,984 1998 15.06 £57,345 4,051 1999 14.91 £61,670 4,859 2000 14.56 £70,771 5,252 2001 13.75 £63,523 5,429 2002 13.85 £63,489 4,568 2003 12.76 £60,834 4,694 2004 12.54 £57,887 3,943 2005 11.61 £58,374 4,080 2006 11.51 £50,027 3,534 2007 11.42 £50,498 3,375 2008 11.28 £53,535 2,968 2009 9.67 £43,060 2,866 2010 9.64 £50,132 3,260 2011 9.11 £46,492 3,117 2012 9.44 £40,251 2,748 www.estatesgazette.com/retail-leisure
