Savills: Oxford Street retail space on chopping block as office schemes proposed
Research from Savills has revealed that 1.32m sq ft of new office schemes on Oxford Street are proposed for delivery within the next five years.
Savills said the conversion of former retail space would account for 72% (960,000 sq ft) of all new office space, as the prestigious street evolves into a mixed-use space.
Demand for 100,000 sq ft+ offices has never been higher, said Savills, with Palantir, Conde Nast, and Evercore all in the market.
Key schemes along Oxford Street include:
- Sirosa’s 163,000 sq ft at Emporium
- Henrietta Place, the former House of Frasers, available from the third quarter of 2024
- Ramsbury & Capital Real Estate delivering 280,000 sq ft at the former Debenham’s Store
- 334 Oxford Street from the fourth quarter of 2024
- Derwent London granted planning for 150,000 sq ft at Holden House 54-68 Oxford Street (expected in 2027)
- and 80,000 sq ft at a former Next store at The Ribbon, Wells Street, being delivered by M&G in the first half of 2024.
Savills says the attractiveness of Oxford Street lies in its strong amenities and cultural offers, along with improved accessibility with the newly opened Bond Street Elizabeth Line station.
Andrew Wedderspoon, director in the West End office agency team at Savills, said: “The very best offices today not only offer cutting-edge design but also strong locations on account of connectivity and transport links and a proximity to amenities and leisure spaces.
“Oxford Street is already globally recognised as a leading retail and leisure destination and its location lies at the heart of Central London. While the area has been hard to imagine as a genuine office sub-market until now, the sheer volume of space available for conversion is a once in a generation moment to transform the street and attract those larger occupiers who may otherwise be pushed out of the West End due to a lack of opportunity.”
Sam Foyle, co-head of prime global retail at Savills, added: “High streets up and down the country are evolving to be far more mixed use and Oxford Street is no different. Where department and retail stores are no longer fit for purpose, there is an opportunity to repurpose shopping streets, to breathe new life into older buildings, bring in new users and drive up footfall that will benefit the retailers that continue to operate in the area successfully.”