High Street landlords need to learn rental lessons from pubco’s
21 January 2009
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.”
For further information on this press release, please contact: Mark
Wingett at Christie + Co. Tel: 020 7227 0794.