BCSC conference: Close relationships needed between landlord and tenant
Published: 25 November, 2009
Ken Ford, executive director at Capital & Regional, welcomed the move towards more flexible leases, and said that he had no desire to force reluctant retailers to keep trading. “I want volunteers, not conscripts, in the battle for market share,” he said.
And he added “I welcome the move towards turnover disclosure, and I hope it’s not only a temporary reaction to the recession.” Ford asserted that partnership is here to stay. “The 21st Century relationship between landlords and tenants is about the community of interest they both share. The relationship between sales, profit and rent can't be denied and in a multi let managed environment landlords do have a role to play in driving sales."
Although he warned that economic hardship could make this harder to achieved. “It’s going to be tough for 2020 and 2011 no matter who wins the election – if indeed there is an outright winner. But I suspect that 2009 will prove to be better than most feared.
“The challenge for landlords is to create places where people want to spend time and money. That requires capital expenditure in a capital-constrained environment.”
And this theme was echoed by Ann Allen, manager of John Lewis Partnership’s retail portfolio. She said: “We all need to work together to create a great experience for our shoppers. This can be achieved through planned and balanced investment in the fabric and common areas of the existing property stock.
“However, this throws up challenges. Who pays for this investment, and how do we ensure it is balanced and achieves a satisfactory return? How do landlords plan when some tenants are frequently looking at short term horizons? Planning will need to be done with skill and agility and I strongly believe that now is the time for asset planning to come to the fore and provide real leadership in our schemes.
“You would not be surprised if it took 10 to 15 years to deliver a new in-town shopping scheme so why be afraid to implement a clear investment plan for the same period for existing schemes.”
Ken Ford, executive director at Capital & Regional, welcomed the move towards more flexible leases, and said that he had no desire to force reluctant retailers to keep trading. “I want volunteers, not conscripts, in the battle for market share,” he said.
And he added “I welcome the move towards turnover disclosure, and I hope it’s not only a temporary reaction to the recession.”
Ford asserted that partnership is here to stay. “The 21st Century relationship between landlords and tenants is about the community of interest they both share. The relationship between sales, profit and rent can't be denied and in a multi let managed environment landlords do have a role to play in driving sales."
Although he warned that economic hardship could make this harder to achieved. “It’s going to be tough for 2020 and 2011 no matter who wins the election – if indeed there is an outright winner. But I suspect that 2009 will prove to be better than most feared.
“The challenge for landlords is to create places where people want to spend time and money. That requires capital expenditure in a capital-constrained environment.”
And this theme was echoed by Ann Allen, manager of John Lewis Partnership’s retail portfolio. She said: “We all need to work together to create a great experience for our shoppers. This can be achieved through planned and balanced investment in the fabric and common areas of the existing property stock.
“However, this throws up challenges. Who pays for this investment, and how do we ensure it is balanced and achieves a satisfactory return? How do landlords plan when some tenants are frequently looking at short term horizons? Planning will need to be done with skill and agility and I strongly believe that now is the time for asset planning to come to the fore and provide real leadership in our schemes.
“You would not be surprised if it took 10 to 15 years to deliver a new in-town shopping scheme so why be afraid to implement a clear investment plan for the same period for existing schemes.”
