Edinburgh and Glasgow boost Scotland's retail rents price lift
A report today show's Scotland has a rental growth of 4.5%
Scotland's retail rent prices have soared higher than England, Wales and Northern Ireland thanks to business in its two biggest cities.
Colliers International's 21st midsummer retail report, which launched on Friday, shows Scotland has seen the largest rental growth in the UK at 4.5%.
It attributes the boost to the success of Glasgow and Edinburgh's prime properties.
The report found a knock-on effect of the £1 billion works to St James shopping centre has seen prime rents on Princes Street, Edinburgh, jump by almost a third.
Ross Wilkie, director retail with Colliers International in Scotland, said: "St James is going to be a world-class shopping centre which, as a destination, is something that Edinburgh has been lacking.
"Rents on Princes Street premises, in particular, have soared as displaced tenants from the old St James battled to secure alternative accommodation.
"While we may see a reversal when the new St James opens, in the longer term, this will help cement Edinburgh's credentials as a world city and will be positive for all areas, especially the east of Princes Street, which is closest to the new centre.''
Glasgow's enduring appeal to international retailers continued, most notably in Buchanan Street, which saw a surge in demand and enjoyed corresponding rental growth.
Out of 27 locations across Scotland, rent has increased in six places.
As well as the capital and Glasgow, which grew at 7% in a year, Stirling has seen growth of 13%, Aberdeen 11%, Irvine 10% and Dunfermline at 5%.
Dr Walter Boettcher, research director, economic and property with Colliers International, said: "Like other parts of the UK, rental growth has stabilised with positive growth in Glasgow and Edinburgh.
"Despite these positive signs, there is still a way to go before rents in Scotland's secondary cities reach the levels achieved in 2008.
"Nevertheless, a general rebasing of rents looks to be complete, so with a fair wind, retail pitches in Scotland may begin to close the gap with the recovery that has been seen in other parts of the UK.''
The report shows the restaurant market - until recently a booming part of the mix in high streets and shopping centres - has cooled and activity is more selective.
John Duffy, director, retail at Colliers International in Scotland, added: "Retailing has changed in the last decade and we are now seeing a lot of very good multi-channel offerings, and those retailers continue to seek space in the right towns, shopping centres and retail parks to locate their bricks-and-mortar operations to best complement their online presence.''
Wales saw a retail growth of 3.1% and Northern Ireland was at 1.6%. The largest post in England came from central London, which grew at 3%