UK’s priciest street for shopping costs retailers more than double second place
New Bond Street in London remains the most expensive street for retailers in the UK, with £607 per sq ft rents more than double that of Sloane Street, the country’s next most expensive.
Research from Cushman & Wakefield (C&W) showed London retail’s rental rates were still operating below pre-pandemic levels. New Bond Street’s levels were 11% below pre-Covid levels, while Covent Garden saw a drop of 30%.
The research said that the 144 stores on New Bond Street showed vast differences in performance, and suggested that rental levels were based mostly on neighbouring businesses, rather than the size or quality of the property.
The middle, “up and coming” section of the area, starting at Conduit Street and ending at Maddox Street, is expected to see a growth in rent prices of 20-30% over the next year. Meanwhile, the jewellery quarter demanded the highest rents, at an average of £2,150 per sq ft. The area by Oxford Street was found to be the cheapest and contained the majority of vacant stores, although the research suggests this number is declining.
Gucci’s impending move to New Bond Street is expected to lead an influx of luxury retailers to the area, according to C&W’s head of London retail, Peter Mace.
Mace added: “While these headline figures suggest New Bond Street has not recovered to pre-Covid levels, deeper down there is a more complex picture,”
“We are seeing several relocations from within the street or from luxury brands who were based nearby, many of which are looking to move to the middle section, to be close to Gucci, which is moving there next year. Gucci’s gravitational pull highlights New Bond Street’s unique dynamic where luxury brands want to keep their friends close and their competitors closer.”
Although New Bond Street remains the UK’s most expensive street, it has slipped a place to fourth in the world rankings, now sitting behind New York’s Fifth Avenue, Hong Kong’s Tsim Sha Tsui, and Milan’s Via Montenapoleone.