Tuesday, March 21, 2023

Lakeside Rents will Rise

According to a report in the Evening Standard, Fierce competition for space between major retailers is pushing up rents, the owner of Lakeside shopping centre in West Thurrock said yesterday.

Capital Shopping Centres is benefiting from demand for larger shop space in “pre-eminent” locations, which is in short supply.

Chief executive David Fischel said the firm made more than 100 lettings since the start of July, generating an extra £3.5 million in annual rent.

At Lakeside, SuperDry has taken space left by the demise of Woolworths, while Mexican fast-food chain Taco Bell has opened its first UK outlet.

Property consultant Cushman & Wakefield recently warned new retail space would fall 40% below the average of the past decade this year as development was scuppered by the recession.

Fischel predicted “slow growth rather than no growth” next year, adding: “What we are seeing is the quality centres in larger cities doing fine. Secondary locations are struggling.”

Westfield, which owns the Shepherd’s Bush shopping centre of the same name, has confirmed plans to spin off half of its Australian and New Zealand malls into a new $12 billion (£7.5 billion) fund.

But ratings agency Standard & Poor’s said the group’s increased reliance on the UK and US could leave its credit rating vulnerable.

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