THE RETAIL BULLETIN - The home of retail news
Lest we forget
HOME
RETAIL NEWS
RETAIL EVENTS
Fashion
Department Stores
Shopping Centres & Retail Parks
Home & DIY
Electricals
Health & Beauty
General Merchandise
Entertainment
Sports & Leisure
Retail Solutions
Food & Drink
Interviews
RETAIL INSIGHTS
RETAIL SOLUTIONS
ABOUT US
CONTACT US
SUBSCRIBE FOR FREE
New luxury retail hotspots set to emerge across Central London

The luxury goods market is now embarking upon an expansionary trail which will ‘lead to increased Zone A rents’.

GENERAL MERCHANDISE

New luxury retail hotspots set to emerge across Central London

The luxury goods market is now embarking upon an expansionary trail which will ‘lead to increased Zone A rents’.

According to the latest research by BNP Paribas Real Estate, accelerated growth in the luxury goods market will lead to the emergence of new locations synonymous with high end brands resulting in increased Zone A rents and higher values.

BNP Paribas Real Estate’s research highlights that following a contraction in 2009 as a result of the financial global crisis the luxury goods market is now reversing this trend and is embarking upon an expansionary trail.  Forecasts estimate that the market will see growth of 57% by 2015, partly attributed to the increase in the number of wealthy individuals.

BNP Paribas Real Estate’s report identifies key Central London deals which demonstrate the rental premiums that occupiers are paying for prime luxury retail pitches. They include: Alexander McQueen who has agreed to open a 4,500 sq ft store at Dover Street on a 15 year lease with a quoting rent of £300,000 per annum and Fendi, who has taken a flagship store and European HQ building on New Bond Street for a £1.7m premium from Mallet Antiques.They also anticipate that the former Molton Brown store at 58 South Molton Street, which is currently being marketed, will set a new Zone A rent beyond the current level of £350 per sq ft.

Within London, BNP Paribas Real Estate’s research points to a number of areas that are set to attract luxury retailers and see rental growth.

Domenica Scordo, retail analyst at BNP Paribas Real Estate said: “London’s retail property market has experienced strong growth driven by international retailers competing for space with the market remaining dominated by an imbalance in demand and supply which is  prompting retailers to look for suitable space in newer, less established locations.”

BNP Paribas Real Estate’s findings suggest that the surrounding streets adjacent to the prestigious affluent locations demonstrate the most potential for growth.  Albermarle Street and Dover Street, located next to Old Bond Street, could be asset managed to create a shopping district for luxury fashion.  The new spin off brands such as Burberry Brit, Hugo Boss Orange and Ralph Lauren Rugby could provide demand for these areas which would create a critical mass of diffusion ranges leading to a new hub for luxury fashion

Shoreditch is also highlighted by BNP Paribas Real Estate’s research as a potential luxury fashion destination with a number of retailers such as Christian Louboutin and Ralph Lauren keen to tap in to the well off market. 

Michael Sheridan, director of Central London retail at BNP Paribas Estate said: “Shoreditch’s combination of low rents, a young professional working population as well as an eclectic mix of retail, hotels, bars and restaurants make the area attractive to luxury retailers, as brands lend themselves to this trend driven area.

“In addition to Shoreditch, the relocation of the US Embassy to Battersea will improve the value of both residential and commercial property in the Grosvenor Square area as redevelopment by Qatari Diar/ Chelsfield will deliver high quality residential, retail and catering provision and is therefore a potential luxury goods location.”

Email this article to a friend

You need to be logged in to use this feature.

Please log in here

Subscribe For Retail News

RETAIL EVENTS

The Retail Design Seminar 2018
The Retail Design Seminar 2018
14 November 2018
The Cavendish Conference Centre
The Retail Design Seminar 2018
Omnichannel Futures Conference 2019
Omnichannel Futures Conference 2019
6 February 2019
Cavendish Conference Centre, London WG1 9DT
A truly omnichannel offering requires an understanding of customer behaviour across all shopping channels and how this should impact your overall business strategy
Customer Engagement Conference 2019
Customer Engagement Conference 2019
5 June 2019
Cavendish Conference Centre, London W1
The 10th Annual Retail Customer Engagement Summit
AI in Retail Conference 2019
AI in Retail Conference 2019
18 September 2019
Cavendish Conference Center, 22 Duchess Mews, London W1G 9DT
Retail marketing is changing pace rapidly by making communication across all platforms personalised, relevant, efficient, and helpful. AI not only helps shoppers find a perfect product but also pre-empts the shopping behaviour and speeds up payment.
The HR Summit 2019
The HR Summit 2019
Tuesday 8 October 2019
The Cavendish Conference Centre, London W1
The 11th HR Summit 2019, The Cavendish Conference Centre, London W1, 8 October 2019