BELFAST CITY CENTRE VACANT UNITS REPORT. BCCM SR No. 62 Vacant Units Report Q1 2012
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1 BELFAST CITY CENTRE VACANT UNITS REPORT BCCM SR No. 62 Quarter One
2 Belfast City Centre Vacant Units Report Quarter One 2012 Cover Image Courtesy of David Lloyd AECOM Design & Planning BCCM SR No. 62 Peter Moore* *c/o Belfast City Centre Management 2 nd Floor Sinclair House Royal Avenue Belfast BT1 1FE 1
3 Contents 1. Introduction Page 3 2. Results Figure One: Quarter One (2011) compared with previous quarters Figure Two: Overall vacancy numbers A3 Pullout: Quarter one (2012) compared with Quarter Four (2011) Pages 4 5 Page 4 Page 5 Pullout Section 3. Conclusion Page 6 4. Recommendations Page 6 Appendix One Vacancy numbers by street Page 7 2
4 1. Introduction 1.1 The last vacant units report (BCCM SR No. 59) had suggested that the vacancy rate across Belfast s city centre for Quarter 4 (2011) had fallen to 16.53% - a reduction from Quarter 3 of 5.34%. However, this figure still represented one of the worst for a major U.K city and figures collected for Quarter 1 (2012) has suggested that the vacancy rate has increased to Quarter 3 (2011) levels. Once can speculate that short term leases for Christmas shops temporarily decreased the number of vacant premises in the city centre. 1.2 Depending on which report one reads, the U.K national vacancy rate average sits between 12.7% (Colliers International) and 17.2% (Financial Times). However, the findings for Quarter 1 (2012) place the current Belfast city centre vacancy rate at 25.9%; an increase of 9.37% on the previous quarter and 8.7% above the most extreme U.K average figures. 1.3 For each of the vacant unit report surveys the numbers of vacant ground floor units were counted in some instances these included restaurants and / or cafés to better give an accurate snapshot of the economic health of the city, therefore these figures are not solely retail based although would tend to exclude office and residential space[s]. 1.4 As of April of this year, the large store rates levy legislation was enacted, although the effects the scheme will have on both large (multiple) retail as well for smaller independent retailers remains to be seen. Any impact will directly affect vacant unit numbers, although the plans outlined two points below that will help address the aesthetic problems of vacant units as well as, hopefully, encourage take-up of empty premises: Where shop fronts or shop windows of empty retail premises are used for noncommercial purposes ratepayers will continue to receive 50% empty property relief (or an exclusion if applicable). To help get long term empty shops (retail premises empty for 12 months or more) back in business next year new occupiers will be allowed to retain 50% empty property relief for a year. 3
5 2. Results 2.1 The findings for this survey were cross-referenced with those from Quarter 4. By calculating the aggregate figure that is the number of streets included in the survey against the number of vacant units, the percentage figures are recorded for each quarter. A total of 158 vacant units were recorded for this quarter (Appendix One), which includes CastleCourt, Victoria Square, Spires Mall, In Shops and Great Northern Mall. If one removes the shopping centres form the total, 127 vacant units were recorded. Therefore, overall, the vacancy rate is 25.9% (Figure One: Table One). If one removes the shopping centres, therefore just accounting for the streetscape[s], the vacancy figure is 28.3%. Figure One: Vacancy figures compares with previous three quarters Total Vacancies Counted Total Aggregate Adjusted (Overall %) Quarter % Quarter % Quarter % Quarter % Table One: Vacancy numbers and percentage compared with previous three quarters 2.2 There have been increases in the number of vacant units at: Ann Street Botanic Avenue Castle Lane Chichester Street Church Lane Donegall Place Great Victoria Street North Street Wellington Place There have been decreases in vacant units at: Arthur Street Castle Street 4
6 Ann Street Arthur Square Arthur Street Bedford Street Botanic Avenue Bradbury Place Brunswick Street Callender Street Castle Lane Castle Place Castle Street CastleCourt Chichester Street Church Lane College Square East College Street Cornmarket Donegall Place Donegall Square East Donegall Square North Donegall Square South Dublin Road Fountain Street Great Northern Mall Great Victoria Street Gresham Street High Street Howard Street In Shops Linenhall Street Lower Garfield Street North Street Pottingers Entry Queen Street Royal Avenue Shaftsbury Square Spires Shopping Mall Upper Queen Street Victoria Square Wellington Place Wellington Street BCCM SR No. 62 Donegall Square North Dublin Road High Street Queen Street There has been no change at: Bedford Street Bradbury Place Callender Street College Square East College Street Cornmarket Donegall Square East Donegall Square South Fountain Street Linenhall Street Lower Garfield Street Royal Avenue Shaftsbury Square Upper Queen Street Wellington Street There has been an increase of 4 vacant units on Donegall Place (Figure Two), one of Belfast s prime shopping precincts. The increases can be seen in the A3 pullout graph with this report. Therefore Donegall Place now accounts for 3% of the total vacancy numbers, Royal Avenue for 4%, Botanic Avenue for 6%, Great Victoria Street 9% (although Great Victoria Street is the longest street in the city centre), North Street 6%, Queen Street 4% and Wellington Place 4%. Figure Two: Vacancy Numbers - Quarter One
7 3. Conclusion 3.1 The overall vacant unit percentage recorded for this survey has increased since the last report and quarter by 8.6%. However, Quarter Three (2011) remains the statistical highpoint. The effects vacant shop premises have on city centres is now a recognised problem within the discipline of town centre management. 3.2 Belfast City Centre Management is continuing to engage with property management agents and building owners, seeking permission to dress windows to not only make the streetscape more aesthetically pleasing, but also to encourage the letting of the empty premises. However, several property owners (most recently in Castle Street) have not been susceptible to this concept. BCCM was, however, recently contacted by a major brand name with a view to using several vacant units in the main shopping core, and this is something that BCCM will engage with and attempt to see to fruition. The effect new legislation introduced from the beginning of April may also have an effect but more long term study throughout 2012 is needed to gauge this. 3.3 The recent closure of High Street brands (such as Peacocks) has not helped the situation, and whether Quarter Four (2011) was clouded somewhat from the opening of short-term Christmas stores is open to debate. But it is a possibility that should not be discounted. 4. Recommendations 4.1 Perhaps obviously, the main focus for all statutory bodies and city centre stakeholder groups should be, initially, to ensure the vacancy rate does not increase further. If this can be achieved funding needs to be secured to enable vacant premises to be dressed, this will in turn aesthetically improve the public realm and therefore make any vacant unit more let-able. The property owners and property managing agents need to be engaged with for this process to ensure it is known that it is advantageous for all parties. 4.2 More fundamentally, the health of the retail core needs to be secured for the long term to make sure once a tenant/business is found for any vacant unit, they are able to stay there and grow their business, this will also decrease the turnover of shop premises and increase the stability of the retail heart of the city centre. 6
8 Appendix One Street Name Quarter One (2012) Quarter Four (2011) Ann Street 6 4 Arthur Street 2 3 Bedford Street 4 4 Botanic Avenue 9 7 Bradbury Place 4 4 Brunswick Street 1 0 Callender Street 2 2 Castle Lane 5 4 Castle Place 1 0 Castle Street 4 5 Chichester Street 3 2 Church Lane 3 0 College Square East 1 1 College Street 2 2 Cornmarket 1 1 Donegall Place 5 1 Donegall Square East 1 1 Donegall Square North 1 2 Donegall Square South 1 1 Dublin Road 4 5 Fountain Street 2 2 Great Victoria Street Gresham Street 6 6 High Street 2 3 Howard Street 4 4 Linenhall Street 2 2 Lower Garfield Street 2 2 North Street 10 7 Pottingers Entry 1 0 Queen Street 6 9 Royal Avenue 7 7 Shaftsbury Square 1 1 Upper Queen Street 3 3 Wellington Place 6 3 Wellington Street 1 1 7
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