Wednesday, December 14, 2011

shopping for shops

Many readers of SOYMB be aware of the current fuss in the UK about the 'decline of the high street', whereby traditional shopping areas are being displaced by out-of-town centres and internet shopping. The BBC website has some coverage of this, including the following from a
shop-owner in Inverness:

Mr Nicol did add, however, that rents for premises were an issue.

He said: "About a year ago I asked a surveyor why shops were being allowed to lie empty and their rents were not being reduced to encourage new occupiers. He explained to me that the rental value of a property had a direct link to the capital value of the property. Because a lot of these properties are owned by national property companies they do not want to see the capital value of their portfolio fall, especially if they have borrowed money from banks. They would rather the properties lay empty than reduce the rents and make some money from them. To me that side of capitalism is bonkers."

Well, he said it.

http://www.bbc.co.uk/news/business-16162250

Paul Bennet

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