Demand for retail space in London has significantly increased, showing a 25% rise year on year.
- The first quarter saw 356 active store requirements, up from 284 the previous year, equating to nearly 1,000,000 sq ft of space.
- The food and beverage sector led with 146 requirements, followed by fashion and leisure sectors.
- London’s appeal continues to attract both established brands and new international names.
- Pop-up space demand has decreased, reflecting renewed confidence in permanent retail space.
Recent research illustrates a notable 25% growth in demand for retail space in London, with 356 active store requirements recorded in the first quarter alone. This marks a significant increase from the 284 requirements registered during the same period in the previous year.
The demand translates to just under 1,000,000 square feet of retail space, highlighting the vibrant market activity in Central London. The food and beverage sector has shown the highest demand, accounting for 146 out of the 356 requirements. Fashion retailers followed with 57 requirements, and leisure and experiential operators accounted for 55.
Within the fashion sector, certain areas are experiencing higher demand. Marylebone, Soho, and the West End each had 12 fashion store requirements, while Knightsbridge had nine, Covent Garden seven, and Islington five. A significant portion of these are new entrants to the UK market from countries like the United States, Scandinavia, Italy, and France.
Interestingly, there is a decrease in the demand for pop-up spaces across the capital, with a 10% drop recorded in April year on year. This is an indication of returning confidence among retailers to commit to permanent retail spaces, as noted by experts.
An esteemed figure in the industry, Paul Souber of Colliers, stated that these figures underscore London’s global appeal as a key retail and leisure destination. He highlighted the interest from both well-established brands and innovative newcomers seeking space across the city’s diverse retail landscape.
London continues to affirm its status as a dynamic and appealing hub for global retail brands.
