2024-10-08-莱坊-Central_London_Retail_Market_Dashboard_Q2_2024_2页_983kb

Central London Retail Dashboard Q2 2024 Summary

Core Content Overview

The Central London Retail Dashboard Q2 2024 provides a concise update on the performance of the retail market in Central London, highlighting trends in footfall, lettings, investment, and vacancy rates. The report underscores a stable yet improving market environment, with a focus on the West End and key sub-markets like Covent Garden, Oxford Street, and Bond Street.

Key Takeaways

• Footfall Stability: Footfall in the West End remained relatively stable throughout Q2 2024, with year-on-year increases of:

  • April: +2.1%
  • May: +1.5%
  • June: +2.8%
  • Average dwell times surged by up to 54% on select pitches, notably Oxford Street, due to the appeal of new retail and leisure developments.

• Lettings Activity: Strong lettings activity was observed, with 92,800 sq ft of deals signed in the quarter. Covent Garden accounted for 53% of all lettings.

  • Notable transactions:
    • The Art of Banksy expanded its pop-up on Charing Cross Road (98-201 Charing Cross Road) by 14,100 sq ft.
    • Alo Yoga opened a 5,000 sq ft flagship store on Neal Street.
    • Lululemon upsized to 8,364 sq ft on Long Acre.
    • Vuori secured 5,004 sq ft on Regent Street.
    • Glossier and Represent also signed lettings on Regent Street.

• Rental Growth:

  • Zone A rents increased across seven out of eight prime pitches, with notable uplifts on King’s Road, Regent St, Covent Garden, and Bond St (at least +10%).
  • Vacancy rates fell significantly in major pitches, with Oxford Street (9.6%) and Regent Street (9.0%) showing the most improvement.

• Investment Surge:

  • Investment activity accelerated by +114% QoQ, driven by the return of cross-border capital.
  • A total of £434m was transacted, compared to £202m in Q1.
  • Key investment deals:
    • Richemont acquired Boodles' flagship at 178 New Bond Street for £82m.
    • Blackstone purchased 130–134 New Bond Street for £230m, leasing it to Breitling, Audemars Piguet, and Church's.

Market Sentiment

• The market is "simmering nicely" rather than overheating, indicating sustainable growth rather than rapid expansion.
• Occupier demand remains solid but not rampant, leading to reduced vacancies and rental growth.
• Cross-border investment is returning, with luxury brands and international investors showing renewed interest in prime retail locations.
• Blackstone is re-entering the market, signaling a strategic shift towards retail as asset values stabilize.

Vacancy Rates

• Vacancy rates across major pitches declined, with the most significant improvements seen in:
  • Oxford Street
  • Regent Street
  • Covent Garden
  • Bond Street

Research Commentary

• International visitor spending showed month-to-month volatility, but domestic visitors still accounted for 60% of total spend.
• Footfall stability is attributed to the attractiveness of new retail and leisure developments.
• Knight Frank Research highlights the importance of expert, independent advice for clients in the retail and commercial sectors.
• The report includes disclaimer and copyright notices, emphasizing the general informational nature of the data and the need for professional consultation.

Key Contacts

• Retail & Leisure Agency:

  • Jonathan Eastwood – Head of Retail Agency, National Retail
  • Josh Braid – Partner, Central London & International Agency

• Commercial Research:

  • Stephen Springham – Partner, Head of Retail Research
  • Ollie Green – Partner, Central London Retail & International Agency
  • Emma Barnstable – Associate, Commercial Research
  • Ryan Mak – Senior Surveyor, Retail & Leisure Agency

• Lease Advisory:

  • Andrew Thatcher – Partner, Central London Lease Advisory

Additional Resources

• Quarterly Dashboards and Weekly Retail Note are available for subscription to stay updated on market trends.
• Reports can be accessed at: knightfrank.com/research

This summary captures the essential data and insights from the Q2 2024 Central London Retail Dashboard, focusing on performance metrics, investment trends, and market sentiment.