Savills predicts 42% rise in take up from new international retailers on Oxford Street East

According to the latest Central London retail research from international real estate advisor Savills the redevelopment of the Oxford Street East could result in a 42% increase in take-up from international retailers. 
Savills finds that 26% of stores east of Oxford Circus have already been earmarked for  redevelopment in order to capitalise on the arrival of Crossrail at Tottenham Court Road Station.  The New West End Company note that Oxford Street East typically receives under half the footfall of the western end of the street and the opening of Crossrail is expected to readdress this balance. The scale of redevelopment will result in fewer but larger units which Savills predicts are likely to appeal to international retailers and the multiple UK retailers which have been underrepresented to date.  For example, only 20% of stores on Oxford Street East are occupied by international retailers as opposed to 30% on the western end and 57% of stores on nearby Regent Street.
Marie Hickey, associate director of research at Savills, comments: "In the last ten years a shift has taken place with Oxford Street becoming less popular, in particular the eastern end, with new international entrants tending to favour Regent Street and more recently Westfield for their UK debut."
Sam Foyle, director of retail, adds: "The scale of development planned for the eastern end of Oxford Street and in turn the increased availability of larger formats coupled with its more competitive rents will open up this end of the street to renewed interest.  As a result we expect to see a marked growth in rents on Oxford Street East over the short-medium term."
Prime Zone A rents on Oxford Street East are currently Ј650, 19% lower than the Ј800 seen on Oxford Street West.  However, rental growth over the last two years has been more pronounced with a 13.0% uplift as opposed to the 9.6% seen on the western end.  
Key schemes include Dukelease's 61-69 Oxford Street which is already prelet to Zara for 35,000 sq ft (3,252 sq m) store and the Arcadia Group and Sirosa redevelopment of The Plaza shopping centre which will deliver a new 73,500 sq ft (6,828 sq m) store plus additional retail units. Land Securities and Frogmore are also planning a new scheme at 26 - 48 Oxford Street, next to their existing Primark store and will provide 76,500 sq ft (7,107 sq m) of retail space.

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