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Landlords on the High Street
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Belle


Posts: 88
Joined: Dec 2009
Post: #21
24-09-2012 12:52 PM

I find it outrageous (although perhaps not surprising) that the (greedy, non community spirited) agents are demanding so much rent for the units opposite Perry Vale as they are a perfect location for so many businesses as the foot fall is so high. I don't see the logic that they would prefer to have no rent than some (reasonable) rent. Perhaps they are waiting for the big boys to appear such as an M & S or Costa who perhaps could afford this astronomical rent? Whatever the case, it makes my blood boil!

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jgdoherty


Posts: 360
Joined: Nov 2007
Post: #22
24-09-2012 12:58 PM

Very informative and the vacancy rate stated here (12.77%) is marginally higher than the one SEE3 publishes.

Not sure I see what inaccuracies are being corrected though.

However you are right - 22k pa can not be justified. Not only in any business plan but more by the fact that potential tenants in this market are not taking up this offer at this level.

Particularly when you have to add construction completion and fit-out costs for the shell.

Further to my earlier suggextion about withholding Completion Certifcates on a block basis there is further potential actions the LA could take.

Whilst I am sure the original legislation was aimed at bringing empty housing back into beneficial use, perhaps councils could use existing legislation to take enforcement action such as compulsory purchase or enforcement of the sale of the property, where owners fail to bring their empty properties back into use

Councils could consider serving a property notice which starts enforcement action on a freeholder, leaseholder, agent or person managing a property.

That might focus the attention of those absentee landlords who hide behind laissez faire agents.

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Tim Lund


Posts: 255
Joined: Apr 2008
Post: #23
24-09-2012 02:22 PM

2,000 plus is not meant to be a sledgehammer but an upper limit. The point is that it is something for which the budget could easily be found. It's something I wrote to Liz Dart about in April 2011, but got no reply. I'm sure the real challenges would be in getting the legal position right for the sharing of official information, and organising how it could be linked to 'crowd sourced' information. But it would be nice to hear back from those in a position to lead such initiative, such as Liz Dart or now the SEE3 team.

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Tim Lund


Posts: 255
Joined: Apr 2008
Post: #24
24-09-2012 02:35 PM

Quote:
you are right - 22k pa can not be justified. Not only in any business plan but more by the fact that potential tenants in this market are not taking up this offer at this level.


This is something that has puzzled me for some time. Below is something I wrote on the Sydeham Town Forum earlier this year, which will explain some of it in some locations, but I doubt if it is the whole story.

Quote:
I've just been doing some research on commercial retail yields, focusing on the premium which investors will pay for retail freeholders where they think there is a chance of being able to convert the property to something more profitable - e.g. housing. This is hardly a thoroughly researched bit of work, but it looks as if the yield on retail freeholds where there is no chance of retail conversion is about 7.5%. In contrast, the price of 150,000 being asked for the freehold of 291 Sydenham Road implies a much lower yield. There isn't a directly comparable rental being asked, but the amount asked for the much more attractive location of 250 Kirkdale, 9,500, implies a yield far lower than 7.5% - in other words, there is a substantial premium in the 150,000 price asked for 291 Sydenham Road to reflect the likelihood that it will in due course become residential.

Such considerations mean that the Town Team, in their efforts to revitalise our High Street, will have to identify commercial landlords who believe that they have more to gain from the new team's efforts than from conversion to residential. This must start from doing more detailed analyses along the lines of the previous paragraph, and identifying the likely winners. In geographical terms, it is likely to amount to identifying core areas, e.g around Sydenham Station, Forest Hill and Kirkdale Village, and starting the necessary dialogue with the commercial landlords and their agents.

It will not be easy; these will be hard headed business men and women, who know very well that local authorities have housing targets to meet - that's why they are paying those premiums for freeholds. To make any progress, LBL will have to support the new Town Team by re-emphasising its planning policies to favour retail uses. LBL may also need to concede on planning policies seen by businesses as undermining retail profitability, e.g. the conservation area rules

.[/quote]

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wilde


Posts: 7
Joined: Oct 2012
Post: #25
12-10-2012 08:52 PM

Quote:
What can be done to encourage landlords to bring businesses into their empty shops? And why is it so easy for new hairdressers to get established while it is so much harder for any other businesses.

I think I have the answer you are looking for but you asked the two questions in the wrong order.

Quote:
"why is it so easy for new hairdressers to get established while it is so much harder for any other businesses."

Simply because you cant get a haircut online.
Who even bothers shopping at actual shops anymore? I think apart from food I havent made a purchase from a shop in around 2 years. I get everything from furniture, to books and computers online and delivered.

Quote:
"What can be done to encourage landlords to bring businesses into their empty shops?"

Oh I think you know what can be done. Everything comes down to money doesnt it? I'm pretty sure you know a few Landlords that could do with a nice government subsidy.

On the other hand you could get with the times and realise that, the way the retail market is going now, the shops could be useful pickup points for goods or services ordered online. That is the future of retailing. A bit like Argos but where the customer orders online instead of at the premises and the goods arrive a few hours or days later.
Afraid that the old days of going traipsing round shops are long gone

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Tinkerbell


Posts: 361
Joined: Dec 2007
Post: #26
13-10-2012 09:00 AM

Ah, the answer indeed. That must be why so many affluent families are moving into areas such as East Dulwich. Because of the many attractive online-order pickup joints on Lordship Lane.

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