New figures by property firm Calan Retail have revealed that retail rents in Cardiff city centre have fallen by as much as 70 per cent, as landlords continue to struggle to fill their properties.
According to the report, the number of empty stores in the Welsh capital city has increased from 9.7 per cent in October 2008 to 15.8 per cent as of October 2012. The main causes have been the recession, changing shopping habits by consumers and an oversupply of space in the city, according to Calan Retail.
The firm revealed the figures to Cardiff City Council during a request to change the usage of the ground and upper floors of the empty Habitat unit on The Hayes, which has been vacant since the chain's closure in August 2011. Calan argued that the retail market has changed over the past five years, with shop rents having fallen by a third on Queen Street since 2007, and some units being empty for more than three years.
Matthew Morgan, partner at commercial property consultants EJ Hales, told WalesOnline that high business rates were the biggest obstacle for potential tenants, and that landlords should consider offering flexible short-term leases.
Mr Morgan said: “Landlords have realised that rather than having someone in there who is struggling to pay rent each month, it’s better to be more flexible and allow for a higher turnover. Landlords also understand that certain uses, such as restaurants and cafes, allow for more ‘dwell time’. It’s perfect because it draws people in and hopefully the neighbouring shops will benefit from that.”
The Calan report concluded that many of these empty units should consider switching to the A3 food and drink market to attract national chains.