Following the launch of a new Retail Agency department we have decided take a look at what is happening in the North East retail market in our latest blog….
The current regional retail market is performing well, particularly in larger destinations such as Newcastle City Centre and the Metro Centre. These destinations are able to attract major international occupiers that already have a presence elsewhere in the UK, for example Tiger, Smiggle and Kiko.
Tiger, who opened their first store in 1995 in Copenhagen and occupy 400+ stores worldwide across 21 European countries, have recently acquired space in Eldon Square. In addition, Kiko, who are an Italian based cosmetics brand, have also acquired retail accommodation within this scheme.
Monument mall is also a desired location and has done well since its rejuvenation in 2013. Multinational tenants including The White Company, Jack Wills, Michael Kors, Rox and Jolie Papier, who all have presence within the mall. Hammerson has just announced the sale of the mall to Standard Life for £75m.
Typical Zone A rents in the centre exceed £250-£300 per sq. ft. ITZA with the likes of Northumberland Street and Eldon Square very much hot spots.
The restaurant market within the city centre is thriving at present with Byron Burgers recently acquiring the old H&M unit on Grey Street adjacent to the Monument. We believe Five Guys, a burger bar first established in Washington DC, are taking the Vision Express unit on Northumberland Street.
There is also a great demand for A2 uses around many town/city centres and betting shops are playing a massive part in this. Barclay’s have acquired the former Bank fashion store in Northumberland Street also.
Affluent market towns in the region such as Hexham, Morpeth, Northallerton and Yarm are all performing well. Durham could also fall into that category. They are able to attract national and quirky tenants due to the demographic within which they are situated and these town centre destinations also do not have much in the way of competition nearby. For example White Stuff has just opened premises within Hexham town centre.
Towns across the region such as Bishop Auckland, Stanley and Blyth have been extremely affected by the global recession of 2007 and whereas many destinations have picked up, these have continued to struggle. This is partly due to their demographic. A day out at the shops is vast becoming a social involvement with many people combing it with a spot of lunch and a trip to one of the local museums/tourist attractions.
As the retail market continues to improve Naylors has received a number of new retail instructions and off the back of this we have launched a new Retail Agency department.
Our newly assembled retail agency team specialise in the sale, letting and acquisition of retail accommodation. We cover the whole of the North East, acting on behalf of landlords, investors, developers and occupiers.
The team has a wealth of market knowledge and expertise which can be drawn upon to ensure clients receive the best possible advice.
For further information about our retail agency services please contact James Fletcher on 0191 232 7030.