Glasgow has strengthened its position as the UK’s second retail city with two new lettings delivering rental highs.
Hotel Chocolat is under offer at CBRE Global Investors’ 42 Buchanan Street for a flagship store of 1,500 sq ft on a 10-year lease. It is understood to be paying in excess of £300 zone A – a record rent for the city.
New Look is under offer to open its first menswear store in the city in the former HMV block at 229-249 Buchanan Street, which was bought by Hines in May.
The fashion brand is paying around £185 zone A for a 10-year lease on 5,500 sq ft.
It joins Vapiano, which has agreed to occupy around 10,000 sq ft on a 25-year lease to open its first restaurant in Scotland.
Demand on Glasgow’s busiest retail street has remained robust despite political uncertainty over the EU referendum and a possible second independence referendum in Scotland.
James Godfrey, partner at Culverwell, said most brands felt it was essential to have representation on the street.
He added: “Demand is outstripping supply and this is driving rental levels upwards.”
Buchanan Street is 100% let, with the delay over a decision on the proposed Buchanan Galleries shopping centre refurbishment restricting supply.
There are eight to 12 live requirements for units of 1,200 to 3,000 sq ft stores in the area.
Buchanan Street has a footfall of 6,600 people per hour and is the most expensive shopping street in the UK outside of London.
Several newcomers to Scotland have signed for space in the city this year, including cosmetics firm Kiko Milano, at 55 Buchanan Street, and Smashburger, at 165 Sauchiehall Street.
Earlier this year burger chain Byron signed for space in 100 West George Street, and Spanish tapas chain Ibérica said it planned to open a restaurant in the city.
Cushman & Wakefield is acting for CBRE GI; Harper Dennis Hobbs is advising Hotel Chocolat. CBRE is advising Hines; New Look is unrepresented.
Bumper deals for Buchanan Street
2015:
• Hawes and Curtis at 131 Buchanan Street, paying £262.12 zone A
• Kiehls at 91 Buchanan Street, paying £266.96 zone A
• Michael Kors at Unit 34 Buchanan Street, paying £260.66 zone A
2016:
• Swatch at unit 26 Buchanan Galleries, paying £280 zone A
•Kiko Milano at 55 Buchanan Street paying £283.50 zone A
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