Last week, Bolton Birch gave their best wishes to Richard Bolton who earlier last month announced that he would be retiring after 40 years of service.
In celebration of all of his work, we asked Richard if he would share a few words regarding his time in the retail property sector and to shed light, from his professional perspective, on how the industry has fluxed and changed over the years – particularly in Bolton Birch’s home of Chester.
“Having worked in Chester for almost 40 years dealing solely with retail property, it’s interesting to look back at the changes that have occurred during this time in the City’s retail heart.”
“The past 40 years have seen major fluctuations in retail rents. Starting from the heady days of the early 80s, rental growth peaked in excess of 350% in some parts of Chester’s retail core.”
“It seems unthinkable now but in the boom times, occupiers with shops in prime positions were able to obtain premiums of over £150,000 for their leasehold interests. Conversely, during more recent times, premiums have been unobtainable and indeed in some cases retailers have had to offer attractive reverse premiums in order to dispose of leases.”
“As shopping trends have changed with the marked increase of online shopping, many large retailers have pulled out of smaller cities and towns due to reduced high street spending. This change in direction has been challenging for the high street and consequently, rents have fallen – a trend that has been seen over the last decade but obviously more so in recent times.”
“However, this flux has now increased the opportunity for smaller, more local and more specialist retailers to gain city centre representation which otherwise might have been out of their reach.”
“The demand from such traders over the last 6 months has noticeably increased. However, to adapt to these changing times, Landlords are not only having to adjust their aspirations on rental levels but also what is deemed acceptable in terms of tenants’ financial strength and trading experience.”
“Chester, like the majority of other towns and cities, is going through a period of major change. From my own experience, I see this change as an opportune moment for Chester to re-establish its own individuality as a retailing centre rather than purely mirroring the same trading names as it has done for the past several decades.”
“The Northgate Project, which includes the new market, alongside the numerous recently completed and proposed hotels, will hopefully assist in revitalising the city as not only a tourist destination but also a successful trading centre and I look forward to Bolton Birch continuing to play a major role in this change.”
If you’re a business looking for retail premises come and speak to the experts over at Bolton Birch. Click here to contact us today.