Shop rents on Bond Street are expected to rise to £1,500 a square foot, thanks to the rising demand of luxury goods, it emerged today.
Last year, Italian fashion brand Salvatore Ferragamo set a UK retail record high by agreeing to pay nearly £1,000 a square foot a year for part of its space on Bond Street.
However, a report by the London Luxury Quarter, a body promoting luxury businesses in the capital, has now found that many global art and jewellery brands want to set up shops in the area and are helping to drive rents up even further.
New tenants include New York-based art dealer Larry Gagosian, who is launching his third London gallery at Mayfair’s 20 Grosvenor Hill.
Commercial property owner The Pollen Estate is also planning five new art spaces on Cork Street while auction house Phillips is moving to Berkeley Square later this year.
Westminster Council has warned that the onslaught of luxury brands might result in a loss of smaller more independent galleries. The council has launched a consultation to come up with a “special policy area” for Mayfair areas including Cork Street, St James’s and Savile Row.
Westminster Councillor deputy leader Robert Davis said: “This is to encourage arts and complementary retailers. We are confident that the new policies will represent a step in the right direction towards securing the long-term future of the arts and jewellery in their international home here in Westminster.”
Mark Henderson, chairman of the London Luxury Quarter, said: “The last five years has seen the interplay between art and jewellery formally recognised as the most enduring and appealing proposition of the area.”
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