Oxford Street vacancy rate lower than pre-pandemic levels
Vacancy rates on London’s Oxford Street fell to 0.5% for the first quarter of the year, according to research from Savills, the first time they have fallen below 1% since before the pandemic.
The research found that whilst quarter-on-quarter contraction was marginal, by 90 basis points, this was a result of good quality vacant space becoming increasingly constrained on the street. As a result, the contraction in supply is expected to exert further pressure on rents.
Quarter on quarter prime Zone A rents for Oxford Street West increased by 3.3%, and with future improvements anticipated on the street – such as the upcoming opening of the former Debenhams site – there is potential for further growth in the future.
The research also found that 21 new international entrants have opened or have secured their first ever London sites in 2025 on Oxford Street. Of these new entrants, fashion has been the most acquisitive to date this year, with 11 new entrants, followed by food and beverage, with six new entrants.
Sam Foyle, co-head of Prime Global Retail at Savills, said: “Oxford Street is currently witnessing a significant uptick in retail activity, exemplified by IKEA’s flagship opening, the redevelopment of the former Debenhams, and Nike’s RunTown experiential pop-up. It’s a really exciting time for the street. Brands are investing substantially into their stores and fit-outs, amounting to approximately £118 million over the past year, and this is set to keep growing as retailers recognise the exposure that Oxford Street continues to offer.”
Marie Hickey, director of research at Savills, added: “The decline in vacancy rates reflects growing occupier confidence, but we anticipate a more measured approach in the months ahead as broader macroeconomic challenges persist. While this uncertainty may place pressure on future rental growth, demand for prime, best-in-class retail opportunities is expected to remain resilient.”