12 Norfolk Street Flashcards
What are rents like in the town centre in King’s Lynn?
Pre covid prime rents on the Vancouver Quarter shopping centre were at £635 ITZA for modern retail shops.
However the main pedestrian circuit, rents were circa £375 ITZA.
What about prime yields?
Prime yields were at 7.5% pre covid
What is happening in the world of retail?
It has been impacted by the change in shopping habits after a rise in e-commerce and multi channel shopping which has led to multiple CVA’s.
The impact has been exacerbated by Covid-19, with restrictions and people working from home limiting footfall in town centres.
What is the retail market like for King’s Lynn?
The make up of town centre shops is mainly budget shops, with very few national retailers being represented in King’s Lynn.
King’s Lynn hasn’t been immune to the effects of Covid-19, e-commerce and a change in shopping habits. Debenhams have recently vacated the town centre, as well as burger king.
How do you think Covid-19 will affect the retail market?
Downward pressure on rents and upward pressure on yields.
Simply because of the economic crisis we are facing and the fact more people are working from home which limits footfall. Consumers are going to have less disposable income and will therefore spend less and there won’t be the footfall in the town centre for people to spend money. This could wipe out the already small profit margins retailers operate with. This will result in empty town centre shops and limited demand to make up for it.
What was the specification of this shop?
- Air conditioning
- Rear service yard
- Double frontage
- LED lighting
What were the works in the licence for alterations
- Basic redecorating
- Construction of changing rooms
- Racking
Why did you grant an agreement for lease and a licence for alterations rather than go straight to lease and treat as a tenants fit out?
The tenant wanted to undertake work before becoming contractually obliged to take the lease, however they also wanted certainty that my client would grant them a lease after they had undertaken alterations, hence the agreement for lease.
What was the EPC rating?
E
What was the marketing strategy?
The property was advertised on Rightmove, my clients website and I also advised my client to advertise it on the EG’s Property Link to target a national retailer.
What is a CPSE enquiry?
A comprehensive set of questions designed to give the buyer information in relation to the history of the property.
What affects the rental bid a charity can make?
- They have a duty to get best value under the Charities Code.
- The fact they get rates relief which distorts the rent / rates equation.
How did you get the tenant to agree to your proposal?
I used the trade off technique to improve the net effective rent over the term certain from £20,000 to £37,000, whilst providing the tenant with a rent free period of 6 months to incentivise them to a lease and to assist with their fit out.
