Three million sq ft of space in Oxford Street pipeline

Around three million square feet of retail and office space is either in the pipeline or under construction at London’s Oxford Street, according to research from CBRE.

Ten core developments will deliver a collective one million sq ft of repurposed retail, food and beverage, and leisure space on the iconic London street, the real estate advisor said.

Following the recent rating revaluation announcement, Oxford Street’s retailers will benefit from lower occupational costs, with CBRE identifying a base rate fall of 40% for Oxford Street.

CBRE says that the improved outlook has led to an increase in appetite from investors for Oxford Street as well as the wider London retail market.

Recently, the sales of Selfridges Department Store on Oxford Street, Fenwick on New Bond Street, The Royal Exchange in the City, and Foyles Bookstore on Charing Cross Road, all to international investors, represents an increase in confidence, CBRE said. The injection of capital means that total London retail investment volumes reached £2.7bn in 2022, according to the research.

Phil Cann, Head of London Retail at CBRE said: “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.”