Central London retail rents remain under upward pressure in select locations, notably the main thoroughfares of the West End.
Recent months have seen numerous new international entrants to the London market, both in high street and shopping centre locations. In particular, the capital’s restaurant sector continues to experience an influx of diverse catering concepts from abroad, as well as expanding domestic operators.
Prime yields meanwhile are relatively stable, with Bond Street continuing to see very low yields of 3.25% and, in exceptional cases, sub-3%.
The large London landlords continue to add value to their holdings through redevelopment and refurbishment, in large part with the aim of creating new shopping and leisure destinations and capitalising on the arrival of Crossrail in 2018.
Despite the steady growth of the last 2-3 years, London retail rents are still expected to show further increases in the second half of 2013.
Source : Knight Frank