Retail Growth Slows in the South East

LONDON-Leeds, Swansea and Hull have seen the strongest rental growth among the UK’s major retail destinations, according to DTZ Research’s UK Regional Retail Rents Report for Summer 2001. But other parts of the country are faring less well with growth slowing in London and the South East.

Leeds, West Yorkshire, saw a 27% surge in rents over the 12 months to June 2001, with prime zone A rents rising from £205 ($301) to £260 ($382) per sf. In Swansea, South Wales, rents rose 26% from £130 ($191) to £164 ($241) per sf. And Hull, East Yorkshire, saw a 23% uplift from £110 ($162) to £135 ($198) per sf.

Other regional sectors to see double-digit growth included York, North Yorkshire; Cheltenham, Gloucestershire and Aberdeen, Scotland. However rents are static in some other major centres including Manchester, Birmingham and Watford, Hertfordshire.

The past two DTZ surveys have seen rental growth strongest in London and the South east, but this time only two centres made it into the top ten fastest-growing locations. Bond Street in London’s West End saw a 16% rental uplift from £410 ($603) to £475 ($698) per sf zone A. And nearby Regent Street saw a 13% increase from £375 ($551) to £425 ($625) per sf. Curiously, Oxford Street which links the two saw zero growth in the past 12 months.