Milton Keynes

Key Facts

Total floorspace: 993,600 sq ft (92,330 sq m)

Missing retailers in central Milton Keynes: French Connection, Blacks, JJB Sports, Primark, TK Maxx, Argos Extra, Ravel

Top five under-sized retailers in central Milton Keynes: House of Fraser (-63,209 sq ft), Marks & Spencer (-31,327 sq ft), Debenhams (-16,794 sq ft), Boots (-14,732 sq ft), H&M (-10,232 sq ft)

Top centres that share the central Milton Keynes total catchment: Northampton (11 per cent), Bedford (10 per cent), Luton (7 per cent), Interchange Retail Park (4 per cent), Dunstable (3 per cent)

Area of highest rental growth over the past five years: The Mall (2 per cent)

Average rental growth over the past five years: 2 per cent

New developments: Milton Keynes Leisure Plaza is set to provide 258,540 sq ft (24,020 sq m) of retail space

Source: Experian/rental data from Churston Heard

Hermes Real Estate and Prudential have begun submitting planning applications for the initial phase of Thecentre:mk’s redevelopment. The improvement plans include adding a larger House of Fraser store, additional retail units and a restaurant corner in Queens Court.

Other applications have yet to be lodged, but are likely to cover proposals for Midsummer Boulevard, the pedestrian-friendly area that links parts of the town. Other plans include a market, car park, residential units and covered link between the car park and shopping centre.

The reconfiguration of space in Thecentre:mk is likely to mean some retailers will leave the town, according to Bidwells retail agent Stephen Morris. Woolworths is one retailer expected to exit.

Jones Lang LaSalle director James Dolphin says the sheer scale of the centre and its number of tenants has made lettings more challenging. “Because it’s such a big town with so many occupants, leases are at massive premiums, so the town’s retail offer has plateaued a bit,” he says. “The town trades well, but there is a lot of competition and turnover in some instances was not exceeding rent. The centre has started to look a bit tired too. Midsummer Place was a good addition to the town though. They are hoping to extend the centre, but it has been slow going.”

The Midsummer Boulevard area has secured Apple and Puma as new tenants, which will join Zara, Topshop and Gap in Midsummer Place.

Morris says: “Prime retail rents have eased due to significant developments coming on stream. Availability stands at 20 per cent, but demand is still strong within the town.”

He adds: “There are a couple of very large requirements earmarked and those, coupled with overall growth in the demographic of Milton Keynes – 40,000 new dwellings are planned by 2016 – will mean the equilibrium is restored. I am hoping for rents to ease up again over the next 12 months as stock and demand balances out.”

Dolphin says the centre’s redevelopment could attract premium and designer retailers. “It is already full of a lot of mid-market and mass-market retailers. Securing premium and designer retailers is a good way of moving the centre forward and bringing shopper interest back. It is likely that developers will have to offer low rent deals to secure these tenants though.”

In the out-of-town market, Ilva had been looking for a 100,000 sq ft (9,290 sq m) site in Milton Keynes, but it is understood to have drawn back from expansion because of difficulties in the UK market.

Morris says footfall has remained strong at Winterhill, the prime out-of-town furniture destination and at Kingston Centre, which has a fashion bias.

Demographics

Population 2.5 million

Total retail spend£10.27 billion

Weighted shopper population 364,573

Index of population with internet access 107

Cars per household 1.22

Annual gross household income£33,672

Most over-represented occupation Managers and senior officials

Most over-represented age band 35-44

Source: Experian