West 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 theWest Midlands fell,
on average, by -0.6% – a weaker performance than last year’s increase of 0.7% and well
below the UK average of 1.1%. This places the region last in the regional ranking
for 2007/08.
• In terms of real rental growth, however, the region experienced a rental fall of -4.7% over
the 12 months to May 2008, again a weaker performance than the UK average of -3.1%.
• During the 12 months to May 2008, prime rents increased at only 9% of centres in the
West Midlands, down from 21% last year. 21% of centres experienced a fall in
prime rent.
• Birmingham remained the most expensive rental location in the region at £325 psf
Zone A, the same as 2006/07. However, Kenilworth achieved the highest annual
growth of 14.3% with prime rents rising from £35 psf to £40 psf.
• As at May 2008, the shopping centre development pipeline for the West Midlands
stood at almost 3.6 million sq ft – 11% of which was under construction, 77% had
planning consent and 12% was at proposal stage.
• In the out-of-town retail market, Birmingham retained the top rent of £60.00 psf at The
Fort Shopping Park. However, Selly Oak saw the highest annual rental growth of 11.9%
at Battery Retail Park, rising to £37.50 psf in May 2008.