TRADERS and landlords must work together for the future prosperity of Guernsey’s small business community, say senior figures. High rents have made it difficult for retailers to set up shop in the centre of Town and several key premises remain empty.
Chamber of Commerce president Mark Trenchard wants landlords to be more aware of the challenges facing traders.
‘I would like to see landlords taking more responsibility because if they don’t they could destroy the Town we have and end up defeating what they were trying to achieve in the first place,’ he said.
‘There are some large investment-related bodies involved in leasing premises in Guernsey and they have no understanding of the island.
‘However, we must also be aware that there are other forces at play and landlords deserve and have the right to make a profit.’
Jones and Partners commercial property negotiator Peter Van de Velde did not see much wrong with the rents.
‘There has been a lot of comment lately about rents being too high, but I don’t think there are many empty shops in Town at all,’ he said.
‘When people say they can’t afford it, that’s really a blinkered view.
‘I accept that rents in the most desirable areas of Town are high, but there are cheaper alternatives available, such as Mill Street and Mansell Street.’
Pauline Richardson has beaten the odds to open up women’s fashion shop Ricoco in the Commercial Arcade.
The manageress of Croft’s for 20 years saw a gap in the market for clothes for women aged 30-plus and decided to go it alone.
But she said that St Peter Port had lost out because of the extortionate rents retailers were expected to pay.
‘All we end up with are the big names and a town that looks like any in the UK,’ she said. ‘There is no individuality left because most independent traders can’t afford the ridiculous rents.
‘I was lucky and have an excellent landlord, but the majority of them are just too greedy.’
Mr Van de Velde rejected the suggestion that independent traders had been pushed out of Town by high rents.
‘Premises are not offered exclusively to English tenants - Guernsey businesses have the opportunity to get them,’ he said.
‘In fact, a lot of the Town shops are too small for big English companies so therefore it actually creates space for small Guernsey traders to take advantage of.’
Town Centre Partnership executive officer Jack Honeybill said landlords had a responsibility to keep rents affordable.
‘I would like to see landlords trying to encourage business by being sensible with their margins,’ he said. ‘But bearing in mind the competition, the profits they make are often not as high as people like to think.
‘The way Town is moving forward with things like alfresco dining is great. The Markets development has brought a lot of character to the area and will hopefully encourage more people to take a risk and set up their business.’
Mr Van de Velde did not accept that landlords had a responsibility to keep rents low for traders.
‘If they charge too much, they won’t
lease their premises and get any money,’ he said.
‘Of course tenants don’t want to pay more than they have to, but the market is set at a level that is affordable.
‘There are also clauses in leases, such as preventing landlords from making yearly rent increases that are too high, which protect tenants.’
Article posted on 6th December, 2007 - 12.00am
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