SnapShop Retailer Directory Search

You are here: Home | Blog | Retail Rents

SnapShop Blog

Retail Rents


Posted At: 23 June 2008 17:00 PM
Related Categories: Retail Property


The Colliers CRE Midsummer Report was issued last week and reports that “in real terms rents have fallen by 3.1 per cent since the early 1990s”, whilst also highlighting a fall in the amount of new shopping space in the pipeline.  I am somewhat sceptical of calculations based on “Constant Prices” – the weightings used to translate from current to constant prices are inexact.  For example, the deflation of the price of electronics is based on the idea of comparing “like-for-like” products.  In an area of very rapid technological advance this means comparing what is now mainstream with what at the time was highly specialist.  Within the context of shop rentals, traders pay for access to target customers but rents are proportional not just to the number of shoppers passing the shop but also to the time they are in front of it (for which the length of frontage is a surrogate measure).  As retailers make better use of their shop space (the advent of flat screen televisions has dramatically reduced the space required by electrical retailers) and their shop frontages, they require less overall space.  So, they now do not require the same space as 20 years ago to make an equivalent impact on shoppers.

Comments Comments (2) Twitter Twitter


Didn't rents in the north rise though?

There is no hope for rents. Town centre shops are in long-term decline under the pressure of the 4 Horsemen of the Apocalypse; Death is demography (ageing population less interested in shopping), War is alternative shopping locations (supermarkets and out-of-town retailing), Famine is the Internet and the anti-Christ is the planning system that strangles development in red tape! Retailers need to get their multi-channel operations sorted and start targetting the grey surfers.

Add a Comment:

Please Note: Comment moderation is enabled. Your comment will not appear until approved. Although we ask for your email address for verification purposes, only the name you enter will show against your comment.

Name *
Email Address *  
Comments *
The opinions expressed herein are the personal opinion of the author and are not intended as statements of fact and do not represent the view of SnapShop or Pragma in any way.


Enter your email address below
to receive SnapShop blogs
straight to your inbox.

Blog Roll:

Hurlbut & Associates
Insight-Driven Retail Blog
James Hall, Telegraph
Marketing Cloud Blog
Retail Consultancy Blog
Retail Contrarian
Retail Technology Blog
Retail Week Comment
Spotlight on German Retail

Archives By Category:

Administrations (71)
And Finally (22)
Christmas (5)
Co-operative Retail (1)
Environmental (6)
E-tailing (13)
Finance & Investment Management (3)
FSP News (4)
Future of Retailing (24)
General (63)
Jane Norman (1)
Media (4)
Retail (137)
Retail Marketing (3)
Retail Property (12)
Retail Statistics (40)
Retail Suppliers (8)
Retailer At Risk (6)
Retailers (193)
SnapShop Developments (3)
Social Commentary (34)
Store Closures (22)
Town & Shopping Centre Management (14)
Womenswear Retailer (3)

Recent Entries:

Retailer View - Weird Fish
Retailer View - Monki
Retailer View - Boden
Retailer View - The Entertainer
Retail Update - November 2018

Recent Comments:

Retail Spotlight – The changing face of leisure
Really interesting sector changes you've highlighted. We have also noticed a sharp rise in the 24 ho... more
Cost of Cash Set to Rise
We have seen growing investment amongst retail clients wanting to get ahead of this trend. it will ... more
And Finally - Surreal
Does my app look big in this, hehe, got to try the Ann Summe... more
Who's next?
Thanks Dave. Sports Direct International has very strong leadership and its accounts have been recor... more
Who's next?
Interesting stuff, it doesn't look like long before they will go under. Any ideas on why sports dire... more
Twitter LinkedIn
Privacy PolicyTerms of Use

Our website uses cookies. Cookies enable us to provide the best experience possible and help us understand how customers use our website.
Our site won't work without them. By continuing to use our website you accept our use of cookies. Find out more about cookies. ×