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- Joined: Tue Jul 15, 2014 10:50 pm
RandomComment wrote:Is this a cloud with a silver lining? If St Davids are willing to turn down retailers with good covenants on the issue of rent, it suggests they are confident of robust demand for the space in the centre. It could be rational if there are potentially other occupier waiting in the wings.
A less rosy story is its more 'defensive'. If they were to grant lower rents to American Eagle to fill a unit they might face downward pressure on rents from other tenants.
Either way it probably suggests they are not in a rush to fill units at any expense. They're going for a strategy of achieving higher rents - which makes it even more likely that the equilibrium of the centre is for a fair bit of space to sit empty at any one time.
Hopefully they won't be in a hurry to let MSU02 to The Range then!!
I am aware that St. David's marketed UG46/47 to Pull & Bear late last year, however they deemed the unit to be too big for the single fascia (12,253 Sq Ft). Since then, Inditex have opened a dual brand store in the Trafford (Stradivarius & Pull & Bear) totalling 10,000 Sq Ft. This format could certainly work in UG46/47 and I think these brands would be slightly more appealing than American Eagle.