Moves to fill large stores vacated by Debenhams have boosted leasing levels by more than 50% year-on-year in the first quarter, according to new data from EG Radius.
Retail lettings and occupational sales among the Radius community of agents increased to 677 this year, from 562 in Q1 2023. Transacted space rose to nearly 2m sq ft, from 1.3m sq ft.
The biggest deal was the sale of the 250,000 sq ft Compton House in Liverpool to Frasers Group, which will be fitted out to house a Sports Direct. It had been occupied by Marks & Spencer since 1928, but last year it relocated to the former Debenhams unit in Liverpool One.
The second biggest deal of the quarter was the letting of the former Debenhams store in Newcastle to Next. The 52,250 unit had stood empty for three years but JLL signed Next on a 10-year lease on behalf of landlord intu Debenture’s Eldon Square.
In Birmingham, Zara signed for 51,024 sq ft in a repurposing of former Debenham’s space in the Bullring. Cushman & Wakefield acted on behalf of landlord Hammerson, with the fashion brand signing a 15-year lease.
Debenhams closed its final stores in May 2021.
JDM Retail Consulting founder and chief executive Jonathan De Mello believes the figures reflect more favourable trading conditions for the retail sector. “Occupier demand has improved versus 2023 as inflation has started to abate, and despite well documented business failures such as the Body Shop, general market sentiment in the retail property sector is positive,” he said.
“Retailers still face rising wage and property costs – the latter in the form of business rates – but these cost pressures are less impactful than they were in 2022 and 2023.”
Other notable Q1 retail deals included Marks & Spencer’s letting of 50,741 sq ft of former TK Maxx space at Union Square in Aberdeen, owned by Lone Star.
In Cheshire, Poundstretcher took 38,729 sq ft at Runcorn Capital Ventures’ Runcorn Shopping Centre, while leisure operator Lane7 signed for 37,980 sq ft at Midsummer Place in Milton Keynes, managed by Ellandi.
Send feedback to Jim Larkin
Follow Estates Gazette
