Investors, developers, and occupiers are spoilt for choice amongst London’s new districts which are emerging as dynamic destinations for retail, leisure and entertainment, according to a new report from Cushman & Wakefield.
Emerging London scores 104 locations across Greater London using proprietary data and metrics, to categorise top locations from ‘untapped’ through to ‘truly established’.This will help guide investors and occupiers where to head next for the best strategic opportunities in the capital.
Retailers in more established London locales are suffering high Business Rates and rising costs, coaxing some away from larger centres and towards new suburbs, creating emerging submarkets which have planted themselves firmly on the map and offer a wealth of opportunities.
These emerging locations are becoming more attractive to occupiers due to multiple factors, including housing affordability in the local area, public transport accessibility, the availability of ‘creative’ space, as well as the existing retail, leisure and entertainment culture.
The report names London locations Barking, Wembley, and Nunhead, among others, as ‘up and coming’ due to their high ‘unrealised potential’ score and relatively high levels of growth catalysts such as start-up space, collaborative industries, public transport and access to housing. British Land is one developer for example looking to maximise the opportunity that lies within London’s ‘up and coming’ suburbs. In May, it applied for Master Plan consent for a compressive redevelopment that will effectively create a new urban quarter in Canada Water, with 1m sq ft of retail and leisure space and 2m sq ft of workspace, as well as 3,000 new homes.
Elsewhere Silvertown, Tottenham, and Brent Cross South remain ‘untapped’ but show exciting levels of unrealised potential indicated by positive demographics, good transport and development pipeline.
At the other end of the spectrum, the report names Islington, Richmond and Hammersmith as the most ‘truly established’ locations. These centres score highly across the board with excellent transport, access to green spaces, culture and entertainment, and strong house price performance and resilient retail rents. These locations are perceived to appeal to investors with a lower risk return profile.
Justin Taylor, Head of EMEA Retail at Cushman & Wakefield, said: “Change is in London’s DNA and the city is evolving on an almost daily basis in response to drivers, including economic flux, as well as social and technological advancements. As a result, opportunities are present everywhere across the capital, from street corners in Brixton and brand new boulevards in Wembley. Occupiers must give consideration to return on investment that is to be had in London’s emerging suburbs and villages when designing and implementing their location strategy.”