High Street, institutional landlords could learn lessons regarding setting rental levels for their tenants from the UK’s major pub companies, according to Christie + Co.

The last 12 months witnessed a number of high-street facing pub chains enter administration through a combination of stifling rents and the downturn in trading.

However, while operations away from the high street have also faced closures, Christie + Co believes that it is the pubco’s continuing support to their tenants and importantly their ability to remain flexible when it comes to rental levels that have led to fewer companies in the traditional pub sector collapsing.

Neil Morgan, Head of Pubs & Christie + Co, said: “High Street rental levels are based on floor areas ie. pounds per square foot, which has proved inflexible and left many retailers both in the pub sector and across other markets struggling to stay afloat in the current climate.

“The support and flexibility of the pubco’s has meant that the pain seen on the high street has not been replicated to such an extent across the entire pub industry. Indeed, we are currently working with some operators who are looking to adopt monthly rental payments rather than the traditional quarterly basis to ease the burden.

“We believe that the more enlightened institutional landlords will understand the difficulties affecting the licensed trade, and be realistic in helping to support their tenants, possibly by offering to realign rents.”

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