Oxford Street vacancies at lowest level since before pandemic

Just a few years ago during the pandemic, Europe’s former busiest shopping street was a sad reflection of its earlier self. But now London’s Oxford Street really has bounced back and its vacancy levels are at a low not seen since 2017.

That has come along with rising footfall as recent visitor traffic reports highlight more buoyant numbers than we’ve seen for years.

The number of empty stores on the giant shopping thoroughfare have reduced so much that only 2.2% of its properties are available to rent. That compares to one point in 2021 when almost 10% of stores along its 1.2-mile length were empty, The Times reported.

The vacancies in recent years came as department stores such as Debenhams and House of Fraser closed, major chains such as Topshop failed, big retailers like Gap exited the UK market and other major players like Next closed branches.

And while plenty of store spaces on the street are still technically empty, they’re being redeveloped with new retail tenants set to move in once that’s completed.

The Times quoted figures from analytics group CoStar and also said that the 2017 benchmark being cited is the point at which demand for store space began to falter as online shopping boomed.

Oxford Street activity took a while to bounce back once pandemic lockdowns were lifted but with spaces being rented to so-called candy stores or cheap luggage and souvenir sellers, the street’s image took a serious battering.

There’s more to come too with TK Maxx and Ikea still to open their major spaces and ongoing development promising much more.

The reduction in vacancies has meant landlords have been able to raise rents and the report quoted Knight Frank data saying the prime areas in Oxford Street retail units have risen to about £675 per sq ft a year, up from £625 at the end of 2021.