East Midlands Retail Market Overview Autumn 2008

Published: September 2008
Source/Company: Colliers CRE

Abstract:
Executive Summary
• Between May 2007 and May 2008, prime in-town retail rents in the East Midlands rose,
on average, by 2.2% – a weaker performance than last year’s increase of 3.0% but well
above the UK average of 1.1%. This places the region joint second in the regional
ranking for 2007/08.
• In terms of real rental growth, however, the region experienced a rental fall of -2.1%
over the 12 months to May 2008, although this is much better than the UK average
of -3.1%.
• During the 12 months to May 2008, prime rents increased at only 20% of centres in the
East Midlands, down from 31% last year. No centres experienced a fall in prime rent.
• Nottingham remained the most expensive rental location in the region at £250 psf
Zone A, up from £245 psf in 2006/07. However, Chesterfield achieved the highest
annual growth of 14.3% with prime rents rising from £105 psf to £120 psf.
• As at May 2008, the shopping centre development pipeline for the East Midlands stood
at almost 2.8 million sq ft – 23% of which was under construction, 43% had planning
consent and 34% was at proposal stage.
• In the out-of-town retail market, Leicester retained the top rent of £95.00 psf at Fosse
Park. However, Mansfield saw the highest annual rental growth of 57.6% at St Peters
Retail Park, rising to £26.00 psf in May 2008.