Issue

To identify the overall value of the client’s Shopping Centre based on its growth prospects within the current retail environment, and analyse the relationship between passing rents and tenants’ turnover.

Solution

FSP studied the existing size and prospects for growth within the catchment area.

An audit was carried out of retailers within the Centre, estimating turnover and comparing sustainable rent with passing rent. 

The prospects for increasing rents were estimated alongside their impact on retail tenants. 

Results

FSP’s research allowed the client to make informed judgements about the likely ongoing return on their investment.  In this case, the client decided to go ahead with the purchase of one Centre but decline another opportunity.