London Retail Market Overview Autumn 2008

Published: September 2008
Source/Company: Colliers International

Abstract:
Executive Summary
• Between May 2007 and May 2008, prime in-town retail rents in London rose, on
average, by 1.1% – a much weaker performance than last year’s increase of 4.9% but in
line with the UK average of 1.1%. This places the region sixth in the regional ranking
for 2007/08. However, a breakdown of this figure shows that Central London achieved
an increase of 1.7%, whereas Outer London increased by only 0.1%.
• In terms of real rental growth, however, the region experienced a rental fall of -3.0%
over the 12 months to May 2008, compared to the UK average of -3.1%.
• During the 12 months to May 2008, prime rents increased at only 24% of centres in
London, down from 63% last year. 3% of centres experienced a fall in prime rent.
• Old Bond Street remained the most expensive rental location in the region at £725 psf
Zone A, up from £700 psf in 2006/07. However, Marylebone High Street achieved the
highest annual growth of 13.3% with prime rents rising from £150 psf to £170 psf.
• As at May 2008, the shopping centre development pipeline for London stood at over
7.6 million sq ft – 27% of which was under construction, 38% had planning consent and
35% was at proposal stage.
• In the out-of-town retail market, Barnet retained the top rent of £55.00 psf at Brent
Cross Retail Park. However, Colliers Wood saw the highest annual rental growth of
29.2% at the Tandem Centre, rising to £46.50 psf in May 2008.

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