While just a few years ago there were several specialist agencies – such as Dalgleish, now incorporated into CBRE – that acted solely for retailers, most now act for both retailers and landlords.
There are still a handful of specialists left in the field, including the likes of Harper Dennis Hobbs and Briant Champion Long, but most have perfected their juggling. Chinese walls are supposed to be in force to stop those agents letting shopping centres mixing with those acting for retailers wanting to take space in the new schemes.
Clients seem to be all too aware of the situation too. Some retailers will stick with an agency even if that agency starts acting for landlords, because they know and trust them. Others will even choose to shift their business to an agency representing both sides of the fence, because they believe they will get better deals.
Property agencies will once again come under scrutiny for conflicts of interest but this time for working on behalf of both supermarkets and councils. Liberal Democrat MP for North Norfolk Norman Lamb has written to the head of the Royal Town Planning Institute (RTPI), claiming that there are “horrifying” conflicts of interest in the planning system.
Lamb’s concerns, which are understood to be being revealed on Radio 4 later this week, are that property agencies often have commercial relationships with both sides when there is a planning application.
He cites GVA Grimley as an example of a company that works for both councils and supermarkets: it lists Tesco as a client and also gives local councils independent advice regarding planning applications with the retailer. It should be noted that both GVA and Tesco maintain that there is no conflict and, with limited numbers of property agencies offering specialist advice, them working for both sides is inevitable.
But is this potential conflict harming the sector? Supermarkets have had it in the neck for years on several planning matters and this just adds to the pile. Tesco in particular will become further embroiled in planning issues because it is now rumoured to want to anchor shopping centres. The supermarket plans to bring its food and home format to town centres and will take on the likes of Debenhams and Bhs.
Yet, if agencies can manage retailer and landlord conflict, surely they can manage supermarket and council conflict? Regardless, if Lamb’s comments lead to a change in the present system for councils and supermarkets, it could end up weakening retailers’ trust in agencies that act for both retailers and landlords.
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