Shopping Centre Management & Service Charge Sub Committee

This group is made up of all the major multiples represented at the PMA and includes many of the consultants representing those who do not employ a specialist direct.
 
We continue to address topical issues such as the RICS Code of Practice and are continuing to develop our audit programme, the PMA QA Mark to test landlords’ implementation of the code following it coming into effect from 1st April 2007. This has been developed to include review of actual costs as we believe this to be more relevant to retailers focus on costs. Other issues discussed at recent meeting include the potential impact of Carbon Reduction Commitment upon Service Charges, Insurance commissions taken by landlords when placing cover recovered through the service charge.

The Landlord & Tenant forum where landlord and retail representatives meet to discuss topical subjects without specific axes to grind continues to provide valuable networking and communication opportunities and to help build Landlord relationships. Improving on communications with landlords and their agents also continues to be at the forefront of our activities while keeping a controlling finger on the pulse of the major overheads of retail property occupancy. Individual meetings with the major agents are under way to ensure their compliance with the spirit of The Code of Practice.

Contact: John Gray – John Gray Service Charges Ltd
Tel: 01909 770416
Mobile: 07730 527861
Email: john.gray@servicechargesltd.com

Rent Review Sub-Committee

The economic downturn and market conditions has helped retailers securing in a number of cases nil increases at rent review in the past year, and to negotiate revised terms at renewal.  Occupational costs for our membership remains of critical importance, and therefore there is great pressure on retailers to restrict rental increases to a minimum. There remains no better way than ensuring our members coordinate their efforts on rent reviews.  This will assist in keeping increases to a minimum, and the sharing of relevant information and evidence as the market conditions change over the coming 24 months.

Rent review co-ordinations have in the past been a worthwhile exercise, following the successes in previous years at Merryhill, Trafford Centre & Bluewater to name a few. However in the last 24 months there has been a lack of activity, both due to market conditions suppressing rental growth and due to the low number of volunteers willing to act as pivot or contact point. We want to look to increase our coordinated work so it can become a more efficient and effective exercise.  The aim of the coordination is not for one person to coordinate all reviews but simply to act as a contact point to ensure all retailers discuss their relative positions and progress.

The Rent review database was successfully re-launched with the new PMA website in April 2007, and the feedback from the membership has been positive. This is aimed purely and simply as a database accessible only to PMA members with the address, rent review dates and contact details for rent reviews in the next 3 years to enable ease of contact and coordination. Currently only a small percentage of PMA members have provided their information and the database is only as good as the amount of information provided. The PMA committee will continue to proactively contact the membership to obtain this information.

There was keen interest in dealing with the out of town retail parks and larger format stores separately given the degree of specialism and increasing number of retailers in this sector. Please contact Claire Kenney of TK Maxx if you wish to become involved in rent review coordination in this sector.

2010 and 2011 presents a clear challenge to retailers to deal with rent reviews and lease renewals and we would urge more retailers to become involved, as the sharing of information and coordinated action is the best way forward.

If there are any queries please contact: 

High Street |  Shopping Centre Unit shops
James Hamilton - Halfords - 01527 513 132 |  james.hamilton@halfords.co.uk  
Large Stores- Claire Kenney  - TK Maxx - 01923 473 449  | claire_kenney@tkmaxx.com
General - Catherine Rodgers - Boots - 0115 949 8066  | catherine.rodgers@boots.co.uk