Plea for new property leasing approach unveiled amid High Street retail pain
A property firm that works with some of London’s largest landlords on Wednesday called for “radical” changes to retail leasing in the UK, as part of a bid to lessen carnage on High Streets.
The plea from Colliers International follows a spate of retail and restaurant collapses or restructures in 2018 that have, or will, result in landlords sitting on scores of empty buildings.
Firms taking the axe to sites include New Look and Carluccio’s.
The company, which counts Shaftesbury and The Church Commissioners as clients, as well as retailers such as Sweaty Betty, has created a plan to help both landlords and occupiers.
Its proposal comprises moving away from traditional long leases in favour of five-year agreements, and calculating rents based purely on the turnover achieved in each shop.
Colliers’ Dan Simms said: “Retailers, landlords and investors face equal challenges, and the way forward has to be an equitable approach which respects the situations of both."
