Research shows a substantial 25% increase in demand for retail space in London.
- There were 356 active store requirements in Q1, totalling nearly 1,000,000 sq ft of space.
- The food and beverage sector led the demand, followed by fashion and leisure operators.
- Marylebone, Soho, and West End emerged as top choices for fashion retailers.
- A shift towards permanent spaces is evident as pop-up demand decreases by 10%.
Research conducted by property agent Colliers has highlighted a significant surge in the demand for retail space across London, recording a 25% increase year on year. In the first quarter alone, 356 active store requirements were noted, accumulating to nearly one million square feet of space. This data is captured using Colliers’ Central London Demand Tracker, providing insightful trends in the retail market.
The food and beverage sector dominated the demand, with 146 store requirements compared to 87 in the same quarter last year. Fashion retailers registered 57 requirements, a slight rise from 50 the previous year, and leisure and experiential operators accounted for 55, up from 36. This increase underlines a robust interest across diverse retail segments, notably in global retail hotspots like London.
Among the 57 fashion-related store requirements, Marylebone, Soho, and West End were the preferred locations, each attracting 12 requirements, followed by Knightsbridge with nine, Covent Garden at seven, and Islington with five. The data also indicates new market entrants, particularly from the US, Scandinavia, Italy, and France, who are exploring opportunities in the UK.
There is a noticeable decline in the demand for pop-up spaces, dropping by 10% in April year on year. This shift signifies a growing confidence among retailers to invest in permanent spaces rather than temporary ones, suggesting a stable long-term outlook for the retail market.
Paul Souber, head of central London retail at Colliers, highlighted London’s appeal as a vibrant global retail and leisure destination, attracting both well-established brands and innovative newcomers. Souber emphasised the variety and opportunity present not only in central areas but also in London’s unique neighbourhoods.
The growing demand for permanent retail space in London reflects its continued allure as a leading global retail centre.
