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