Soaring demand for prime central London retail units led to a 9% increase in rents in the area during the final quarter of 2015 – compared to 0.8% across the UK as a whole.
Overall, rents for high street stores in central London jumped by 18% in 2015, highlighting the strong demand for units, according to the latest CBRE Prime Rents and Yields Monitor
While rents increased during the last quarter of the year, footfall fell by 3.9% and retail sales were up just 0.1% due to the weather and the rise in the number of shoppers buying online instead of on the high street.
Online retail sales grew by 15.1%.
Phil Cann, head of UK retail for CBRE, said: “The Christmas period has been a mixed bag for retailers, with retail sales rising slightly on December last year, despite a marked retreat in footfall from UK high streets.
”Nevertheless, central London continues to boast some of the most sought-after retail spaces in the world, a fact brought to light by the quite remarkable jump in rents toward the end of 2015.”