The North-South divide

Last week there was a deal reported in my property press – which just demonstrates the power of the Capital.

not available in foot asylum…

Valuation of shops is a bit of a black art – we zone shops on the principle that the front (window) is worth more than the back. Interestingly the technique is not actually written down in a code anywhere (RICS APC students please take note!).

Bond Street in London is generally regard as the most expensive retail address in the UK – last week a new tenant signed a lease for a shop – Boghossian are Swiss and sell luxury jewellery. They have agreed to pay £1,050 per square foot. This is the zone A rate – i.e. for the first 20ft depth …

Compare that with Clumber Street in Nottingham – where the latest deal reported is for Foot Asylum – who are paying a headline rent of £155 . But this is ignoring the incentives the landlord has offered, when you take account of these the rent drops on a comparable basis to £131.

So Bond Street is eight times more expensive to trade than Clumber Street. Wow.

About these ads

2 comments on “The North-South divide

  1. I’m not involved with property leases at all, so I’d like to clarify something. Are those monthly rates you are quoting?

    • Simon – apologies! I wasn’t trying to increase the complexity!
      No – rents in valuations are always expressed in the UK as annual figures. So it’s per square foot per annum.
      We haven’t quite wrestled ourselves away from feet and inches – and long may that continue….

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s