The latest report from international property adviser DTZ â€“ UK regional retail rents April 2002 â€“ says that LondonÂ's main shopping streets are continuing to attract big name retailers, as demonstrated by high retail rental growth, although the performance of Oxford Street remains static once again.
London, along with Wales and the West Midlands, were the only regions to demonstrate retail rental growth in the 12 months to end December 2001, evidence that general demand from retailers for premises elsewhere in the country is muted.
In Central London, principal shopping streets including Regent Street, Kings Road, Kensington High Street and Covent Garden all experienced increases in retail rents of over 10% through 2001 as retailers clamoured to secure prime sites. On Oxford Street, retail rents have now remained flat since the winter of 1999.
Ed Humbert, retail director, DTZ, said: 'London is a world city and international retailers are still actively competing to secure space in the prime locations such as Covent Garden and Regent Street. Demand for Oxford Street has been less consistent but it remains the UK`s premier shopping street and demand still remains strong for flagship stores in the prime stretch to the west of Oxford Circus.'
The outlook for the retail sector through 2002 is reasonably positive. Whilst rental growth across all commercial property sectors is likely to be minimal, retail is widely expected to outperform others in terms of rental growth, assuming consumer confidence remains high.
Full report availible from www.dtzresearch.com.
(source: DTZ International)