The property debate at the Retail Week Conference revealed that landlords and retailers actually have a greater level of common interest than might first be thought.

It feels like a long time ago now, but having been away last week, it’s still worth picking out some of the themes of an interesting debate on property matters which I chaired at the Retail Week Conference a couple of weeks ago.

The over-riding theme was that there is, in fact, a greater commonality of interest between landlords and retailers than the regular rows over issues like upward only rent reviews and quarterly in advance rent payments might suggest.

Firstly, there was a lot of support for Retail Week’s Manifesto for the High Street campaign and the urgent need to revitalise the UK’s high streets. In addition, from the property side as well as the retailer side, there was agreement that if BIDs are to really work as a tool for regenerating town centres, property owners should be compelled to contribute as well as retailers.

There was also a lot of anger from both sides that failing retailers are perceived to be allowed to exploit the system by using CVAs or pre-pack administrations to get out of their commitments to creditors, and in the process secure more favourable terms than their more successful rivals.

Interestingly, the retailers present seemed to sympathise that the system as it stands puts landlords in a lose-lose situation, where they’re faced either with being stuck with an empty shop or taking a big hit on their income while simultaneously alienating their good tenants.

It heightened my sense that if use of the CVA and pre-pack mechanisms continues to grow, the system will need to be changed to prevent their abuse.

 

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