Hopes for realism in Town rents
Monday 25th April 2011, 2:30PM BST.
It was difficult at first glance to decide which was the more surprising – that St Peter Port has 41 vacant shops or the belief by the Town Centre Partnership that they would all be back in use within six months.
However, a similar survey by Deputy Mary Lowe in 2009 disclosed the same number of empty properties, although it is not clear if the areas examined were identical, and no town will ever have 100% occupation for various reasons.
So, the TCP view that tenants are available for the 41 units is very encouraging and it is to be hoped that they do not remain unused for much longer, especially the landmark property with the curved-glass windows – one now smashed in – in the Arcade.
The other disturbing aspect of the articles we ran on Thursday was the high price of rents. While it is possible to lease for £150 a week, prime locations are commanding around £2,000 a week, which represents a considerable volume of goods sold if all the other overheads are to be covered as well.
Whether the TCP expectation that tenants are to come forward reflects greater realism on the part of landlords is not clear but there will be further pressure on property owners when Leale’s Yard finally opens at St Sampson’s Bridge.
Most people living in Guernsey lose sight of how high prices are.
A two-bed flat in Bristol, for example, was yesterday on offer for £36,950, an amount that would be laughable here, and the cost of an average property in Guernsey would buy a palatial home in quite desirable parts of the UK.
While that is a comment on the strength of the economy, it comes at a price. Goods on sale here reflect rentals and there is little else that isn’t affected by that.
The 41 empty properties might represent a lack of demand or that landlords are looking for returns more closely associated with the conditions before the credit crunch.
As the TCP has said, fundamentally it is up to property owner to ensure that their shops are let.
The next six months will show whether they have got that message.
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