Oxford Street West Zone A rents are expected to reach £1,000 per sq ft this year, driven by department stores such as Selfridges.
Property agency Savills said further plans to extend the store are having a significant influence on the quality of tenants looking to open stores on the Western section of London’s Oxford Street. The gap between Oxford Street West and Oxford Street East rents currently stands at approximately £250 per sq ft.
Aldo set a record Zone A rent of £739 per sq ft in 2011, followed by £800 per sq ft by Footlocker in 2012 and £928 per sq ft to Dubai Toystore in 2014.
Anthony Selwyn, head of central London retail at Savills, said: “Whilst Oxford Street East will undoubtedly follow suit in the next five years as development continues, the reality is the gap in rents which stands at £250 per sq ft between West and East Oxford Street could widen before it closes due to greater demand. The £20m makeover plans for Bond Street will also have a long term impact on the West, increasing the number of visitors to the area.”
Alan Spencer, director of central London retail, added: “There are over 20 lease events due on the western section of Oxford Street in 2015 and it is highly likely that we will witness more activity, with retailers looking to rationalise their space or re-locate. Current demand would suggest that the availability of space on Oxford West is likely to have a positive impact upon rents, although variables such as the quality of units that coming to market and timing will invevitably have some bearing on the level of this increase.”
Oxford Street West attracts more than 10.2 million visitors per month compared to 4.2 million on the Eastern side, according to data from The New West End Company.