York recorded the largest increase in rents of any retail location outside of London between April 2015 and April 2016 as figures across Yorkshire increased for the first time in 10 years, according to Colliers International’s annual Midsummer Retail Report 2016.
The city of York saw rents increase by 19% year-on-year, boosting the Yorkshire and Humber’s average rental growth by 1.9% and resulting in real rental growth for the region for the first time since 2006 of 0.6%.
The report found that of the 21 centres analysed across the region, five recorded increasing rents, three saw a decline and 13 remained stable.
The region’s largest cities of Leeds and Sheffield both recorded increases in ‘Zone A’ rents with 4% and 6%, respectively.
Tom Cullen, retail director at Colliers, commented: “Although only a nominal increase of 0.6%, it is encouraging to see real rental growth for retail locations in the Yorkshire & Humber region for the first time since 2006.
“Leeds and Sheffield continue to perform well as retail destinations and this is attracting additional investment in the form of a host of new development in the pipeline for both cities over the next 12 months.
“York’s significant rental growth is due to the fact that the city has a very tight historical centre with a strong affluent pool of young professionals, student population and thriving tourist scene, which all contribute to driving a strong demand for retail and lack of supply.”
Meanwhile, Manchester was named as the only centre to achieve substantial rental growth in the North West of England in the 12 months to April 2016, while Liverpool enjoyed 99% occupation in its prime locations.