Central London retail continues to outperform – Knight Frank
Knight Frank has drawn attention to the continued strength of the Central London retail property market, as the sector is still outperfoming the rest of the UK in terms of sales, footfall and property market activity. “Retail in the capital continues to defy the serious economic problems being seen in the wider UK and globally. Some suburban locations such as Hackney, Haringey and Croydon were badly affected by the August riots, but in Central London it was largely business as usual,” said Ian Barbour, head of retail leasing at Knight Frank.
Rents are hitting record levels in several key locations, including Bond Street, Oxford Street, Regent Street and Covent Garden, as international retailers continue to seek units in this prime streets but the supply of available space remains limited. Darren Yates, partner in Knight Frank’s research team, notes that the firm’s latest survey of retail availability in Central London showed that some locations had virtually zero availability.
Property investors are also still attracted to single shops in premier streets, while established landlords are also interested in adding to their portfolios. This interest is keeping yields at historically low levels, says James McCluskey from the firm’s West End investment team.
