Retail: Filling in the gaps

News

05 November 1994

But, according to Pontifex, the number of voids in the town centre as a whole is now diminishing. Prime space is always in demand and there are “major players” in the market for 2,000-sq ft to 4,000-sq ft units whose requirements cannot be satisfied.

Help is at hand. On the semi-pedestrianised section of High Street, west of Boots, Land Securities has applied for planning consent for complete redevelopment of three existing shops. Two new units will be formed, each with 4,000 sq ft of sales split between ground and first floors. Completion is expected in autumn 1995 and, while current zone A rents are £55 to £60, Upton, whose firm is agent, believes that he can achieve £65.

Despite considerable movement at Regent Arcade, there are now only six vacant units and three of these are under offer, according to Ian Waddell of agent Matthews & Goodman.

An “upsurge of interest” in the centre during the past three months has seen Cuba Fashions take a unit on a new one-year lease. Waddell claims that this demonstrates the flexible attitude of landlord Lloyds Investment Managers. Nevertheless, only two units have been let on short-term leases.

Zone A rents reached a boom-time high of £120. Currently, in the body of the development, this figure is more like £60 to £85, although Waddell says that £115 was achieved recently at the High Street end, where a sports retailer is taking a unit.

A newsagent is negotiating a lease of a shop which was previously occupied by Chapmans opticians. The latter has taken a larger unit within the arcade on a new 20-year lease. Two other retailers have also moved to larger or more prominent units.

The Church Commissioners-owned Beechwood Place, completed in the height of the recession, has not been as fortunate. Although Disney has recently taken a large unit fronting High Street on a turnover lease, the majority of units are still unlet. The Church Commissioners have put the investment on the market for £17.5m through Healey & Baker.

On Promenade, which is dominated by House of Fraser’s recently upgraded Cavendish House store and includes Monsoon, Laura Ashley, Waterstones and the town’s second W H Smith unit, zone A rents range from £63 to £70. Tea and coffee specialist Carwardine has taken a former chemist shop on a new lease from Unilever Pension Fund. Nicholas J Upton and Jones Lang Wootton were joint agents.

Pontifex says that a considerable number of shops have been let recently in secondary pitches. On Regent Street and Winchcombe Street, Material World, Brookes Dry Cleaning, AT Mays Travel Agents, Uniform Clothes, The Hearing Centre and Town Pharmacy have taken space.

While central Cheltenham shopping has struggled, out-of-town retailing has taken off. Between recently opened Tesco and Sainsbury superstores, which mark either end of built-up Tewkesbury Road, Gallagher and MFI are developing retail parks and Aldi is constructing a unit.

At Gallagher Retail Park units have been let to Matalan, Pets at Home, Lights Fantastic, Homestyle by Fads, Furniture Workshop, DFS, Currys, SWEB, Comet, Harveys and Allied Carpets. A 20,000-sq ft extension to the scheme is believed to have been prelet to Mays Carpets.

Nearby, MFI Properties is developing the Kingsditch Retail Park. Here, Kwik Save has relocated within the site and other units have been let to Halfords and a McDonald’s drive-through restaurant.

But Tim Heal believes that Tewkesbury Road has reached saturation point and that future occupier demand will be elsewhere. He asks: “How many DIY stores do you want to visit in the same road?”

While economic downturn reaffirmed the strength of the prime pedestrianised section of Cheltenham’s High Street near Marks & Spencer, where zone A rents are still around £130, considerable recessionary pain was felt in the secondary locations, including the town’s two shopping centres, Regent Arcade and Beechwood Place. But, according to Pontifex, the number of voids in the town centre as a whole is now diminishing. Prime space is always in demand and there are “major players” in the market for 2,000-sq ft to 4,000-sq ft units whose requirements cannot be satisfied. Help is at hand. On the semi-pedestrianised section of High Street, west of Boots, Land Securities has applied for planning consent for complete redevelopment of three existing shops. Two new units will be formed, each with 4,000 sq ft of sales split between ground and first floors. Completion is expected in autumn 1995 and, while current zone A rents are £55 to £60, Upton, whose firm is agent, believes that he can achieve £65. Despite considerable movement at Regent Arcade, there are now only six vacant units and three of these are under offer, according to Ian Waddell of agent Matthews & Goodman. An “upsurge of interest” in the centre during the past three months has seen Cuba Fashions take a unit on a new one-year lease. Waddell claims that this demonstrates the flexible attitude of landlord Lloyds Investment Managers. Nevertheless, only two units have been let on short-term leases. Zone A rents reached a boom-time high of £120. Currently, in the body of the development, this figure is more like £60 to £85, although Waddell says that £115 was achieved recently at the High Street end, where a sports retailer is taking a unit. A newsagent is negotiating a lease of a shop which was previously occupied by Chapmans opticians. The latter has taken a larger unit within the arcade on a new 20-year lease. Two other retailers have also moved to larger or more prominent units. The Church Commissioners-owned Beechwood Place, completed in the height of the recession, has not been as fortunate. Although Disney has recently taken a large unit fronting High Street on a turnover lease, the majority of units are still unlet. The Church Commissioners have put the investment on the market for £17.5m through Healey & Baker. On Promenade, which is dominated by House of Fraser’s recently upgraded Cavendish House store and includes Monsoon, Laura Ashley, Waterstones and the town’s second W H Smith unit, zone A rents range from £63 to £70. Tea and coffee specialist Carwardine has taken a former chemist shop on a new lease from Unilever Pension Fund. Nicholas J Upton and Jones Lang Wootton were joint agents. Pontifex says that a considerable number of shops have been let recently in secondary pitches. On Regent Street and Winchcombe Street, Material World, Brookes Dry Cleaning, AT Mays Travel Agents, Uniform Clothes, The Hearing Centre and Town Pharmacy have taken space. While central Cheltenham shopping has struggled, out-of-town retailing has taken off. Between recently opened Tesco and Sainsbury superstores, which mark either end of built-up Tewkesbury Road, Gallagher and MFI are developing retail parks and Aldi is constructing a unit. At Gallagher Retail Park units have been let to Matalan, Pets at Home, Lights Fantastic, Homestyle by Fads, Furniture Workshop, DFS, Currys, SWEB, Comet, Harveys and Allied Carpets. A 20,000-sq ft extension to the scheme is believed to have been prelet to Mays Carpets. Nearby, MFI Properties is developing the Kingsditch Retail Park. Here, Kwik Save has relocated within the site and other units have been let to Halfords and a McDonald’s drive-through restaurant. But Tim Heal believes that Tewkesbury Road has reached saturation point and that future occupier demand will be elsewhere. He asks: “How many DIY stores do you want to visit in the same road?”