London’s retail resurgence continues, with a marked increase in investment volumes for the sector in Q2, according to global real estate advisor, CBRE.
CBRE’s data shows that Central London retail investment volumes increased 71% quarter on quarter, totalling £424 million in Q2 2024.
Bond Street continues to draw high volumes of capital, with four transactions completing on the street this quarter. Together, these deals account for almost 60% of total London retail investment volumes for the first half of the year.
Phil Cann, Executive Director, CBRE, said: “We continue to see strong investment for key central London locations, with Bond Street remaining a primary area of focus and in particular, luxury brands beelining for the middle of New Bond Street as they look to cement their physical position. With rental growth being realised in a number of locations, investor confidence continues to grow, and we expect full year investment volumes to exceed last year.”
Retailer activity levels on the iconic Oxford Street also continue to gain momentum, with brands relocating on the street committing to larger stores.
CBRE’s data shows that all retailers that have moved store on the street since the start of 2023 have upsized, typifying the return of physical store commitments. On average, brands have upsized by 195%, which equates to an additional 8,751 sq ft of floorspace.
There has been a flurry of lettings on Oxford Street, with 19 transactions having completed in 2024 so far, totalling 170,000 sq ft. Since the start of 2023, there have been 30 new entrants to the street and six new brands to the UK market altogether including Future Stores, Manière de Voir, Activate and Paris St Germain.
Retailer activity is further supported by robust footfall levels. West End footfall grew year on year in all months throughout the quarter, peaking in June which was up 2.8% on last year. Tube use remained consistent throughout the quarter and in some instances, exceeded pre-pandemic levels. Tube passenger performance was strongest in May, driven by weekend visitors, which averaged 3.3% above the equivalent day in 2019.
Graham Barr, Head of UK Retail, CBRE, added: “Off the back of a record year for leasing activity, there have been no signs of a slowdown so far this year. Despite the competitive pressures of online shopping, it is clear that consumers want a holistic, in-store shopping experience. The strong activity levels across the board and a robust development pipeline firmly puts London’s West End back on the international stage.”
