Interest in Torquay's retail premises on the rise

Enquiries for shop units in Torquay town centre have been on the increase, a leading estate agent has reported.

With properties changing hands, landlords are asking for lower rents, which is making the town centre more attractive, said Stephen Lofthouse, director of commercial estate agents Bettesworths.

One of the properties sold by Bettesworths is the former Bitz unit in Union Street.This is expected to be split into two units and the new owners, who are local investors, are seeking tenants. Bettesworths said it had sold the freehold on behalf of the administrators of Bitz.

Mr Lofthouse said: "There has been a massive increase in enquiries for retail premises in 2010, and this has resulted in new names on Torquay's main shopping street and a reduction in the number of empty units. I am confident that this trend will continue, with lessors now offering attractive rental terms to attract new operators.  This in turn will allow Torquay to remain a viable year-round retail centre with the benefit of a substantial seasonal uplift in the summer months."

He said rental values in some areas had fallen to levels last seen in 1999 on properties which had changed hands. Those with existing tenants were tied into rent reviews which went upwards. Confidence in retail had started to recover.

"I think we are over the worst," he said.

Chris Harnett, commercial negotiator at Waycotts of Torquay, said: "I think it has turned around, is at least pointing in the right direction, but has some way go to. Maybe by this time next year we will see a different Torquay town centre."

They have had several lettings and are in the process of agreeing the lease of the former Woolwich building in Union Street for a new national fashion retailer.

Mr Harnett said: "Shops are definitely moving more than last year, and we have recently let a few properties that have been vacant for some time. We have also relocated one shop from Union Square into a prime Union Street location. Some landlords have reduced rent by up to 50 per cent compared with the peak in 2008. The problem is that the new rateable value was based on 2008 rentals, and this is putting people off."

There was still interest in the town from budget shops, including the 99p Store, which is looking for a 10,000 sq ft unit in Torquay. Some were taking units for the summer.

Bitz, at 116-118 Union Street, became vacant in 2009. The premises have been bought by a Torquay-based investment company which intends to refurbish the property and convert it into two separate retail shops and Mr Lofthouse, who negotiated the sale, said this was further positive news for Torquay town centre.

"The purchaser has demonstrated confidence in the future retail sector of the town by making this substantial investment, which will require significant further capital to undertake the refurbishment and conversion into two smaller units," he said.

The property is one of Torquay's larger shops with more than 2,000 sq ft of retail space, plus extensive storage and potential for secondary sales on the first floor.

Bettesworths have also been instructed to let both of the new units when ready, with details available on Torquay 01803 212021.