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their ideal car, explore financing options, obtain instant part exchange valuations and arrange test drives for now or later.
The store’s multi-media approach is augmented by 138-inch video walls while an ‘Experience Centre’ in the Westfield car park has 10 cars available for test drive. There is also a separate ‘New Car Handover Area’.
The store was launched in October by SEAT UK Director, Richard Harrison, with the help of Jodie Kidd, fashion model, TV personality and well-known petrolhead. Harrison commented: “We’re delighted to be able to bring our exciting brand into the heart of London with the opening of our second store. It will open up the SEAT brand to a whole new generation of enthusiasts and buyers alike, thanks to its high-tech, relaxed Mediterranean vibe, and our team of product experts”.
From a property perspective, the leasing process involved is slightly more complex than a normal centre letting – primarily as it also involves a demise in the car park. Different agreements for each element have to be addressed especially as the car brands are feeling their way into this type of retailing and are still ‘test driving’ the format to some extent. It is also vital to address with landlords how the store will be promoted both within the mall and also through the centre’s marketing activities.
Lettings to date have been done on long-term leases of five years or more. Obviously, turnover rents are not appropriate for this type of retailer so the lettings have been done at the relevant estimated rental value. Interestingly, we are
also now seeing interest from the big secondhand car dealerships and this would indicate that the sector can generate lettings in a wide range of centres at different rental price points.
We will definitely see many more of these types of lettings over the coming months. Just about every car brand is looking at the potential for in-mall stores both in the UK and on an international basis. It is certainly a type of retailing which is more in step with the upcoming ‘Millennial’ generation with its focus on digital interaction and immediate impulse purchasing.
It can only be a matter of time – if, indeed, it’s not already happening – that someone goes to a shopping centre for a pair of shoes and ends up buying a car.
emel.ahmet@colliers.com | +44 (0)121 265 7555
The car’s the (shopping centre) star
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