Posted by:
FSPRetail ,
17 May 2011
Best practice in shopping centre valuation has changed. Valuations should now reflect the long term sustainability of passing rents. The willingness of retailers to pay the passing rent is the key to the valuation. This fundamental change follows the 2008 financial crisis. The BCSC Asset Pricing Guide issued last week gives little emphasis to lease terms and much to rent sustainability. read more…
Tags:
GEOFF'S VIEW, RETAIL PROPERTY, RETAIL RENTS
Posted by:
FSPRetail ,
26 March 2009
Retailers have begun to treat landlords as any other supplier, by telling them how much they are prepared to pay for their product. Proponents of this approach have already included Stylo, Aurora and House of Fraser. Although the catalyst may be the current economic situation, the change is likely to endure and the pioneers will be joined by others. read more…
Tags:
GEOFF'S VIEW, RETAIL RENTS
Posted by:
FSPRetail ,
21 December 2008
Assessing the reliability of retail rental income, always important for asset managers and property investors, is now critical. FSP has developed a Rental Risk Index (RRI) that quantifies the quality of rental income and is using its RRI to reduce rental risk particularly in shopping centres. The premium attached to rents in a shopping centre lies in the centre’s ability to control its environment and tenant adjacencies, unlike the situation in most high streets. The current pressure to take on any retailer without regard for tenant fit, simply to maintain the immediate income stream, will erode this premium. It is not true that any retailer who will pay the rent is good enough. read more…
Tags:
GEOFF'S VIEW, RETAIL RENTS
Posted by:
FSPRetail ,
23 October 2008
Will the historic distrust between landlord and tenant be permanently affected by the current economic crisis? The antipathy has survived previous downturns, so why should this one be any different? read more…
Tags:
GEOFF'S VIEW, RETAIL RENTS