8 May 2020
The Weekly

Category: Market Analyses


The coronavirus crisis could lead to a change in the way retail rents are calculated in the UK with a move away from the long leases and upward-only rent reviews that have been the norm until now. This could mean the UK becoming more like the US, France and Italy, where shorter leases and part of the payment being linked to turnover and visitor traffic are more common. UK shop rents have long been on an ever-higher trajectory, until recent years when the combination of Brexit uncertainty and the shift online saw more and more retailers struggling to pay both high rents and high business rates. Colliers International said that 80% of retail landlords expect the pandemic to lead to permanent changes in the way shop rents are calculated. The firm surveyed landlords that own over 120 million square feet of retail property to reach its conclusions. At present, landlords are able to use "masses of relevant data sets" to bring more precision to pricing that will be of benefit both to property owners and their tenants.