Retail: protecting themselves against the thorns of the White Rose

News

11 February 1995

While Leeds has the critical mass to survive the arrival of the 650,000 sq ft (60,385m²) White Rose Shopping Centre, smaller centres scattered along the M62 may not be so fortunate.

The attraction of a 138,000 sq ft (12,820m²) Savacentre, a 125,000 sq ft (11,613m²) Debenhams, and units let to C&A, BhS, Next, Argos, Woolworths and Burton Group, plus 4,500 free parking spaces, could easily tempt the shopping public of the M62 towns to bypass Halifax, Huddersfield, Bradford and Wakefield.

Bradford is one of the stronger centres in the area, according to Mike Fawley of Erdman Lewis. There are probably 20 requirements for prime space in the town.

However, the 108,000 sq ft (10,033m²) which is proposed at Forster Square could soak this up and leave space to spare.

There have been few changes at Prudential’s Kirkgate Centre, where zone A rents on Kirkgate itself are about £90 (£968.78 per m²), and those in Darley Street are about £55 (£592.03 per m²). The town also has a second prime area, Broadway, where BhS, W H Smith and C&A are located and where zone As are nearer £75 to £80 (£807.32 to £861.14 per m²).

Out of town, on Canal Road, Commercial Development Projects has sold the freehold of a 98,500 sq ft (9,104m²) warehouse, let to M6 Cash & Carry on a 25-year lease. Eagle Star Properties paid £5.62m for the property, reflecting a yield of 8.5%. Lewis Ellis acted for Eagle Star and Chesterton for the vendor.

Constant turnover in the retail pitches of Huddersfield denotes a healthy town, with balanced supply and demand, says Fawley. He adds that there were two underbidders for the sublet of 26 New Street. JJB Sports took the shop for £70,000 pa on a four-year lease from Home Power, part of Yorkshire Electricity. The rent equates to a zone A figure of £65 per sq ft (£699.68 per m²).

The market is particularly brisk on New Street and Land Securities recently let no 32 to Future Zone for a zone A figure of £70 (£753.50 per m²), while Art Factory has paid a small premium for no 66.

The former Alexon unit at 68-70 New Street, trading as Dash Sales, is currently under offer to a travel agent and, nearby, the former Ratners unit at 35 Princess Alexandra Walk has been assigned to Select Ladieswear.

Henry Boot and Kirklees council have an outstanding consent for the Kingsgate Centre, a 241,000 sq ft (22,389m²) scheme, which was granted planning consent in 1992. But, according to Fawley, this may well “over egg the cake”.

There are 30 prime requirements for Halifax, a phenomenon which Fawley says is difficult to rationalise. He believes that the only explanation is that shopping stock in the town is so poor – most units are between 300 sq ft and 400 sq ft (28m² and 37m²). He claims that there are only about 10 decent shops in the town, including M&S, Burton, W H Smith and Sears. Despite this scarcity, and the apparent demand, rents have fallen from zone As of £60 (£645.86 per m²) at the peak, to about £45 (£484.39 per m²).

While Leeds has the critical mass to survive the arrival of the 650,000 sq ft (60,385m2) White Rose Shopping Centre, smaller centres scattered along the M62 may not be so fortunate. The attraction of a 138,000 sq ft (12,820m2) Savacentre, a 125,000 sq ft (11,613m2) Debenhams, and units let to C&A, BhS, Next, Argos, Woolworths and Burton Group, plus 4,500 free parking spaces, could easily tempt the shopping public of the M62 towns to bypass Halifax, Huddersfield, Bradford and Wakefield. Bradford is one of the stronger centres in the area, according to Mike Fawley of Erdman Lewis. There are probably 20 requirements for prime space in the town. However, the 108,000 sq ft (10,033m2) which is proposed at Forster Square could soak this up and leave space to spare. There have been few changes at Prudential’s Kirkgate Centre, where zone A rents on Kirkgate itself are about £90 (£968.78 per m2), and those in Darley Street are about £55 (£592.03 per m2). The town also has a second prime area, Broadway, where BhS, W H Smith and C&A are located and where zone As are nearer £75 to £80 (£807.32 to £861.14 per m2). Out of town, on Canal Road, Commercial Development Projects has sold the freehold of a 98,500 sq ft (9,104m2) warehouse, let to M6 Cash & Carry on a 25-year lease. Eagle Star Properties paid £5.62m for the property, reflecting a yield of 8.5%. Lewis Ellis acted for Eagle Star and Chesterton for the vendor. Constant turnover in the retail pitches of Huddersfield denotes a healthy town, with balanced supply and demand, says Fawley. He adds that there were two underbidders for the sublet of 26 New Street. JJB Sports took the shop for £70,000 pa on a four-year lease from Home Power, part of Yorkshire Electricity. The rent equates to a zone A figure of £65 per sq ft (£699.68 per m2). The market is particularly brisk on New Street and Land Securities recently let no 32 to Future Zone for a zone A figure of £70 (£753.50 per m2), while Art Factory has paid a small premium for no 66. The former Alexon unit at 68-70 New Street, trading as Dash Sales, is currently under offer to a travel agent and, nearby, the former Ratners unit at 35 Princess Alexandra Walk has been assigned to Select Ladieswear. Henry Boot and Kirklees council have an outstanding consent for the Kingsgate Centre, a 241,000 sq ft (22,389m2) scheme, which was granted planning consent in 1992. But, according to Fawley, this may well “over egg the cake”. There are 30 prime requirements for Halifax, a phenomenon which Fawley says is difficult to rationalise. He believes that the only explanation is that shopping stock in the town is so poor – most units are between 300 sq ft and 400 sq ft (28m2 and 37m2). He claims that there are only about 10 decent shops in the town, including M&S, Burton, W H Smith and Sears. Despite this scarcity, and the apparent demand, rents have fallen from zone As of £60 (£645.86 per m2) at the peak, to about £45 (£484.39 per m2).