Estate agents hit by crunch - BBC Video

dopester

mr.broderick wrote: »

I remember something called windolene, is it pink?

At first I thought you are right, and you may well still be, but I'm not getting any positive google results back for windolene other than it being a glass cleaner.

As for the rest of that post, I do know you like to go fishing and tease, so I don't take any offence. Not that I would anyway as it's not for me to judge what people do providing it's of their own choice and free will - but it's sadder if they are doing it simply as forced to for the basics of life / survival / food. And like fc123 says, you could possibly be right.

dopester

fc123 wrote: »

The adjustments will take a decade or so (in retail premises).
LL tries to re-let at current rent, fails, but doesn't reduce rent at first.
Tries to 'cloak' rent reduction by offering, say, 1 year rent free (to keep up the rental levels of nearby premises)...but, eventually, he will need to get a tenant in as he has to pay full business rates now (new law in April 08).

Eventually, reduces rent to a lower level...which attracts an entrepreneurual type with a new retail concept they want to try out.

The whole process takes years though.

Both our shops were taken on at the 'reduced rent' stage of the cycle.

Interesting answer - thanks.

fc123

dopester wrote: »

Interesting answer - thanks.

I didn't add on the rubbish bit.

Entrepreneurial type makes a success of new venture and, after a while, others decide to open up in the same area. Creates a new, vibrant micro community that becomes increasingly popular.

LL enjoys the success of his strip (regular modest income)...and then a Costa exec comes along and decides the area is prime for a nice, shiny Costa (or Starbucks whatever).

LL gets excited as coffee shops compete with each other offering higher rents to secure the site.

LL gets a unit let at a much higher rent.

Rent review time. Evidence exists of the 'Increased value and rental demand' of the area. All the rents rise. Niche players get priced out but, hey, that's OK as more shiny, new chains move in.
Proof that the location is on the UP.........and then the area loses 'Something'. Sure it's shinier and tidier but innovation is then slowly squeezed out.
Clone towns / Streets. New economics institute coined the phrase.

and happening to me again right now. Last man standing in my immediate area.

HankMcSpank

fc123 wrote: »

Thats good though....Tesco is taking over everything.
2020; UK renamed TESCO.

Total UK domination ....and all because some bright marketing spark had the idea of giving customers a loyalty card giving a whopping 1% off their (already high) prices.

And the punters bought into it hook, line & sinker.

lostinrates

The Tesco shopping culture is somethin I did not miss when living abroad. My village has NO shop now, nothing apart from the pub and we are lucky to have that. Nearest big village there are lots of antique shops but the greegrocer is long gone and the butcher is in trouble, an there is no baker. The next nearest small town.....a supermarket town....the little high street has lost its popular bric and brac cheapy antiques shop and the greengrocer is dying slowly. There is a super PO that sells pretty mcuh everything, but I think 5 estate agents. Its going to look pretty bleak when they go.

Generali

fc123 wrote: »

I didn't add on the rubbish bit.

Entrepreneurial type makes a success of new venture and, after a while, others decide to open up in the same area. Creates a new, vibrant micro community that becomes increasingly popular.

LL enjoys the success of his strip (regular modest income)...and then a Costa exec comes along and decides the area is prime for a nice, shiny Costa (or Starbucks whatever).

LL gets excited as coffee shops compete with each other offering higher rents to secure the site.

LL gets a unit let at a much higher rent.

Rent review time. Evidence exists of the 'Increased value and rental demand' of the area. All the rents rise. Niche players get priced out but, hey, that's OK as more shiny, new chains move in.
Proof that the location is on the UP.........and then the area loses 'Something'. Sure it's shinier and tidier but innovation is then slowly squeezed out.
Clone towns / Streets. New economics institute coined the phrase.

and happening to me again right now. Last man standing in my immediate area.

The LL on Marylebone High Street offered a low rent to the Ginger Pig (butchers) and a couple of others to 'poshify' (technical term) the area.

Oblivion

I certainly shan't be shedding any tears at the thought of estate agents going bust. Most that I've come across operating in my area of Surrey are just out and out sharks who would tell the prospective purchaser the earth was square if it would clinch a sale.

Conrad

A new agent opened here a year ago and framed themselves as a low fee web based model. 2 months ago they gave it up and opened a traditional branch with the usualy higher fees.

They say the internet / low fee model just didn't cover costs as people still expected to have 30 minute phone conversations sorting the usual selling issues (chain problems / trying to work out where/why the delays were etc).

I still think the internet model may work, but somehow buyers and sellers in a chain will need to all trust one another and be able to keep in regular contact.
It gets problematic when Humans start concealing things from one another, and it is here the EAs do add something to the process in that people can be uncomortable probing / dealing directly and feel safer and more comfortable dealing through a middle man.

fc123

Generali wrote: »

The LL on Marylebone High Street offered a low rent to the Ginger Pig (butchers) and a couple of others to 'poshify' (technical term) the area.

I can't recall the name of that property company but I believe they are long established and fairly 'Old School'. They are quoted a lot in the trade press. Marylebone High St is one of those areas that is a great model for a varied strip of retail serving local needs but with a little extra 'zap'.
Unlike Shaftesburys, who own Carnaby St. and now, chunks of Soho.
They like the 5 year lease model and prefer tenants to turnover as 'keeps the area fresh' they say. I wonder what will happen to that area in the downturn, many facias are only there for marketing purposes, their retail sales are almost an add on.

Now my lovely LL is in a Big Glass tower in Mayfair.
Out for the top £££ every time. If they were like the Marylebone LL, then the Glass Tower may have to be swapped for a concrete bunker in Middlesborough (no offfence to MB...just a comparison to Mayfair).

He is doing everything he can to stay up in the tower.....and I am a mere little wiggly thing in the bottom of the pond.

Handily, this new hobby of mine (understanding classic economics) is making the transition much easier. By day my work is fluffy, trivial and not life saving.
I really understand the theory of it all now. Before, I would have seen it as failing in not being able to keep up....but I understand it all in a different way now.

Am just starting 'The gods that Failed' ) Larry Elliot + Dan Atkinson'. Seems a little tabloidy in style, but I understand it.
Mentioned that 'Where are the customers yachts?' thingy.

Trouble is knowing what to do and actually having to do it...well, it's not going to be fun.

My bet is a lot of ex EA's will end up as temporary lets selling bankrupt stock...and paying no rent, just servicing the business rates for the LL.

cookie_monster

Hope the local Conrad EA closes down, we can do with a good local cafe serving hearty full english breakfasts.