Recent data gathered by global real estate advisor, CBRE, shows that around 3 million ft2 (280,000 m2) of retail and office space is either in the pipeline or under construction on London’s Oxford Street, after a boost for potential occupiers.
The street was recently subject to a rating revaluation affecting retailers, with CBRE’s research identifying a base rate fall of up to 40% for prime Oxford Street.
Together, ten core developments are set to deliver 1 million ft2 of modern re-purposed retail, food and beverage and leisure accommodation.
CBRE says that this will transform the street and provide new flagship stores which are aligned to current retail requirements and increased interest from occupiers.
Phil Cann, head of London retail at CBRE commented: 'The transformation of Oxford Street is well underway, and the scale of the development pipeline is a clear indicator of landlords’ commitments to investing in the street.
'The proximity of a new business district and Elizabeth Line access is set to significantly strengthen the long-term legacy created for occupiers, tourists and shoppers at the retail destination.
'With rebased capital values and the prospect of rental growth, the investment rationale for Oxford Street is compelling. As both occupier and investor confidence continues to grow, we anticipate a higher number of transactions this year.'
The improved occupational outlook has driven investor appetite for both Oxford Street and the wider London retail market. This renewed confidence follows recent investment transactions including the sale of four iconic London retail buildings.
Selfridges Department Store on Oxford Street, Fenwick on New Bond Street, The Royal Exchange in the City and Foyles Bookstore on Charing Cross Road have all been purchased by international investors, bringing new capital to the sector from Austria, Thailand, North America and Germany.
As a result, London retail investment volumes for 2022 totalled £2.7 bn, according to the research.