Retail rents on a number of London’s top shopping streets have risen sharply, according to a report.
Rents on Oxford Street increased by 19.2 per cent in the 12 months to June, Cusham & Wakefield’s Main Streets Across the World 2011 report found. The street in London’s West End is now the second most expensive location for retailers in the UK.
“While New Bond Street has dropped in the global ranking, it remains one of the most sought-after locations in the world for luxury brands, with demand far outstripping the supply of available accommodation”
Peter Mace, head of central London retail at Cushman & Wakefield
Despite the rising rents on Oxford Street, New Bond Street retains its position at the top of the UK rankings and is the sixth most expensive shopping street in the world. Its most expensive shop space was rented out for £965 per sq ft over the year, an increase of 4.3 per cent compared to 12 months ago.
Covent Garden has dropped from second to third in the UK rankings, behind Oxford Street, after retail rents increased by 9.1 per cent over the year. London’s Brompton Road and Regent Street make up the rest of the top five.
The Main Streets Across the World 2011 report tracks the rents of the top 278 shopping districts in 63 countries. It ranks the streets and countries by using the most expensive location in each area.
Retail rents on all the London streets included in the UK’s top 10 most expensive shopping locations have increased during the past 12 months.
However, New Bond Street has fallen from fourth to sixth in the global rankings, despite its rental rates increasing.
Fifth Avenue in New York tops the global rankings, followed by Causeway Bay in Hong Kong and Ginza in Tokyo, Japan. Pitt Street Mall in Sydney, Australia, and Avenue des Champs Elysées in Paris, France, have both moved above London’s New Bond Street.
Cushman & Wakefield’s head of central London retail, Peter Mace, said: “While New Bond Street has dropped in the global ranking, it remains one of the most sought-after locations in the world for luxury brands, with demand far outstripping the supply of available accommodation.
“The last open market letting to take place in the prime section of the street was in December 2009 when 169 New Bond Street was let to Piaget on a new 15-year lease at a record rent.
“There is no question that rental levels have increased over the past 20 months but to date, a landlord has not been able to secure vacant possession of a prime shop to create new market evidence. I am sure it is only a matter of time before Bond Street re-establishes itself close to the top of the rankings.”