Blackfriar: York’s retail success could have ripple effect across region

The centre, which has Fenwick’s as its flagship store, has let a 600 sq ft unit to Bagel Nash on a five-year lease and a 500 sq ft unit to Love Forever, also on a five-year lease.

The two lettings mean that the entire 200,000 sq ft centre is now let.

Tom Limbert, partner at Leeds-based Central Retail, which has acted as the centre’s sole letting agents for the past ten years, said the lettings show that confidence is returning to York city centre and this is the best picture the group has seen in five years.

The news will help allay fears that the new JLP development at Monks Cross on the outskirts of York will damage the city centre.

Mr Limbert said these concerns appear to be unfounded, as demand from retailers and leisure operators for space is the strongest he has seen since 2008 and the casual dining sector in particular is booming.

Coppergate, which opened three decades ago, is sited within the city walls and houses a number of well-known retailers including Marks & Spencer, Topshop, Boots, Topman, Miss Selfridge, Evans, Clarks, The Whisky Shop and Joy.

It has had a chequered history.

In 2003, the Government turned down plans to demolish and redevelop the centre, anchored by a new Debenhams, following negative public reaction.

Debenhams has since announced plans to open a second store at the Monks Cross, increasing fears that Coppergate and the city centre would be hit by the new development.

La Salle is now expected to ask for planning permission to develop the site in a way that meets with public approval.

Meanwhile, it is thought that Monks Cross could be fully let within six weeks.

When it opens next Easter, the £90m Vangarde development will include a John Lewis, Next and Marks & Spencer.

The development on the outskirts of York will also house a 6,000-seat community stadium, which will be home to York City FC and the York City Knights rugby league club.

In a near farcical development – if it wasn’t so expensive – the whole site has been held up by the presence of great crested newts.

The newts are protected across Europe, and an alternative habitat nearby had to be found for them before the work could start.

The “physical cost” of moving them has been estimated at around £500,000, although according to the developers, the total cost of dealing with the great crested newts could run into millions, because of the delays they have inflicted on the project. According to the developers, the new shopping centre is expected to provide a £12m to £14m annual boost to York’s economy.

Elsewhere in York, Central Retail has just completed a letting to ARC Inspirations on the former chapel at 3 Little Stonegate for its upmarket bar and restaurant operation, Banyan which will open in the summer.

It is the final part of letting the rear area of the former Borders’ Books at 1/5 Davygate following the acquisition of the 20,000 sq ft flagship store in June 2011.

Mr Limbert said that York is thriving despite the downturn, as shown by a number of new upmarket restaurant chains.

Wagamama and Jamie’s Italian have both opened, with Yo! Sushi which opened last autumn and Cote, the London restaurant chain opening this summer as well on Low Petergate.

“There is still demand from the likes of Carluccio’s and Giraffe who want to be in the city,” he added

The end of a recession and a return to growth often follows a strong pick-up in the more affluent areas of the country and it is to be hoped that York’s success will trickle across the rest of the county.

In Leeds, the city centre has seen a huge boost from the Trinity Leeds development, which has exceeded expectations since it opened in March.

Like Coppergate and Monks Cross, the developer behind Trinity Leeds, Land Securities, isn’t concerned by the proposal of the nearby Victoria Gate development, which is to be anchored by a John Lewis store.

Hammerson, the developer behind the Victoria Gate scheme, also recently bought Leeds’ Victoria Quarter in a £136m deal.

Gerald Jennings, the portfolio manager for the north at Land Securities, said: “My view is that John Lewis and the new retailers will act as a complementary offer to Trinity Leeds.

“We desperately need a John Lewis and it will bring more people into Leeds.

“Victoria Quarter is about high end European and American retailers. It won’t be competition, it will be complementary. “It won’t be a competitive environment,” he added.

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