UK 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 UK rose,
on average, by 1.1% – a weaker performance than last year’s increase of 2.8% and the
lowest annual rental growth since 2001.
• In terms of real rental growth, however, the UK experienced a rental fall of -3.1% over
the 12 months to May 2008, representing a further weakening of the market over
2006/07 when rents decreased by -1.4% in real terms.
• During the 12 months to May 2008, prime rents increased at only 18% of centres in the
UK, down from 41% last year. 23 out of 609 centres on the Colliers CRE in-town retail
rents database experienced a fall in prime rent, amounting to 4% of the total.
• Old Bond Street remained the most expensive rental location in the UK at £725 psf
Zone A, up from £700 psf in 2006/07. High Wycombe achieved the highest annual
growth of 44.4% with prime rents rising from £90 psf to £130 psf.
• As at May 2008, the shopping centre development pipeline for the UK stood at over
52.3 million sq ft – 25% of which was under construction, 42% had planning consent
and 33% was at proposal stage.
• In the out-of-town retail market, Leicester retained the top UK rent of £95.00 psf at
Fosse Park. However, Newport saw the highest annual rental growth of 100% at
Newport Retail Park, rising to £35.00 psf in May 2008.