No end in sight for pain for landlords
Colliers International is predicting that the slump in retail rents will continue, with only prime central London stores sowing any growth. Shopping centres and retail parks will be particularly hard hit, according to Oliver Kolodseike, the firm’s senior property economist.
“Over the 2018-2022 forecast horizon, negative rental growth is expected across all retail segments with the exception of Central London standard shops,” Kolodseike said. “We expect declines of -1.5% year-on-year in 2019 and 0.5% in 2020. Outside of London, rents are predicted to drop at a sharper rate, with standard shops in Rest of UK predicted to record a decline of -3.0% year-on-year in 2019, before slowing slightly to -2.0% in 2020. Shopping centres and retail warehouses (both -1.9% pa) will see the largest drops in rents.”
