9 Comments
Mar 3, 2023Liked by Ian Shepherd

Ian,

I shared your post with a friend who is a Landlord, and he makes some good points below:

"The big issue is Business Rates. You can “place manage” all you like, but if the property overhead is too high, nothing will work.

There needs to be a recalibration of overall outgoings before the high street can regenerate – Landlords are trying to reduce rents as far as they can, but this is largely pointless as Business Rates remain fixed at pre recalibration levels. What other taxes do you know of where an asset is taxed at 50% of its annual value (and in the case of High Streets, the old value before rents fell).

In many cases Landlords are clinging on and accepting falls in rents but this is only half the story. Landlords with borrowings of more than 50% are stuffed. In many cases, business rates are now higher than the new recalibrated rent – and there’s nothing that can be done about that – that leaves Landlords hands tied in trying to provide a viable overall overhead for the retailer. I know of some landlords who have let their properties go for nothing just to avoid the empty [property rates – effectively their freehold values are now nil.

I am now letting my shops in my local town for lower than the tenants are paying to the council in business rates (previous rents £20k+, new rent £8-9K. Business rates remain at around £14K. That is just wrong, and it is that that is killing the re-birth of the high street – not fanciful thinking about “place management”..

The 3 steps to high street heaven in this article totally irrelevant until the gov fixes high street business rates – until then the High Street is fundamentally broken…

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Feb 28, 2023Liked by Ian Shepherd

Great points again, Ian.

The placemaking side is very interesting & one that seems to be at the bottom of each councils radar...

One thing providing a bit of success across Birmingham & Coventry is "destination" areas - grouping entertainment, food & fashion in their own mini areas.

For a smaller "town" high street, this might be impractical financially, but creating a community vibe, where people feel safe to browse, chat & buy would be a good start...

One problem with the big cities is the high risk of Crime - again, take Coventry as an example - there is a huge investment into the "food" area of the city, but literally a 1 minute's walk away there is a street that has the highest crime rate in the city...

That is probably a different topic entirely, but one that I know influences a number of people (consciously or unconsciously)

Thanks again for sharing your thoughts

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Feb 28, 2023Liked by Ian Shepherd

Thanks for your thoughts Ian, they are some I have been outlining even before Covid accelerated the decline of many of the established High Street brands.

I think one of the main questions that independant, institutional Landlords and local authorities need to address is whether they have an 'aligned view' for how the retail offer should be delivered in their locations to create an exciting destination where the blend of retail, casual dining and experience is worth visiting?. It's no good having a thriving set independants but where the major space lost by the exit of M&S, House of Fraser, Topshop, Gap etc leaves the central shopping area full of large voids. How this space can be reconfigured into smaller usable units or repurposed has a major effect on whether the Town itself stays on the customer's radar or they travel to a totally different location but the time taken to find suitable alternatives takes years currently and this is the biggest challenge given that customers make their decision within weeks or months - I use Leamington Spa as a live example, the shopping centre is a souless structure with large voids, the OOT area in Leamington now boasts more choice of large space retailers with cafe areas and free parking.

Developing the blue print for effective retail space is a requiremnt in most locations across the UK now and not just in flag ship shopping centres so working out the priorities where the space is sustainable over time and drives a return is hugely difficult, what would be the criteria on population, drive time, history, there would crearly be a grading but equally in smaller towns the offer cannot be consigned to just charity locations and coffee shops. A huge challenge that I am really interested in and keen to see how these areas are tackled.

Thanks for sharing the details on placemaking and Institute of Place Management.

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Feb 28, 2023Liked by Ian Shepherd

One of my favourite places in London is the Mercato Metropolitano in Elephant & Castle. Perhaps I just love eating ... but the concept of communal seating and amazing choice from all the food vendors casts a wide net. It must take quite a bit of courage from those vendors to be in a competitive space though.

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