■ The expansion of luxury retailing has been most prevalent within Mayfair giving rise to its 'luxury quarter'.

■ Availability constraints and demand for Bond Street units has meant luxury brands are having to look beyond Bond Street in order to satisfy requirements.

■ But its not a case of being forced beyond Bond Street. For some the relative 'off pitch' nature of these streets means they are more attractive from a brand perspective.

■ The expanding variety in luxury pitches reflects the changing nature of the luxury retail environment and the desire from brands to differentiate themselves. As a result central London's retail landscape is becoming more closely aligned with that seen in New York, which is made up of a 
series of luxury retail 'villages' each with their own distinctive character and brand profiles.

"Luxury brands are having to look beyond Bond Street to satisfy requirements"

■ It is not just fashion brands that are on the hunt for new pitches. Galleries and high-end restaurants, the traditional residents of these 'off pitch' locations, have been particularly acquisitive within the 'luxury quarter' attracted by the influx of ultra-wealthy second home owners and tourists to the Capital. For example, Caprice Holdings secured the former Natwest Bank site on Berkeley Square which set a new benchmark for restaurant values at £190 per sq ft.

■ Mount Street was one of the first streets in Mayfair to emerge as an alternative luxury destination. Since 2012, the street has attracted five new international entrants, with Céline opening their first UK boutique on the street last year. As availability has become more constrained so to has its rental growth. Zone A rents have increased by an average of 6.7% 
per annum over the last three years 
as opposed to 15.6% over the last 
10 years.

■ More recently Dover, Albemarle and Conduit streets have all moved up the agenda for luxury brands attracted by their proximity to Bond Street without the Bond Street price tag.

■ The most high profile opening has been that of Victoria Beckham's first store on Dover Street in 2014. Alexander Wang is expected to open on Albemarle Street this year in the former post office site. This influx of luxury fashion brands has seen Zone A rents move from £135 in 2008 to their current £550 - £600 per sq ft level.

■ This transformation as a luxury brand destination has been facilitated by a change of use at ground floor level.

■ Office and service uses on Dover Street have fallen 60.0% since 2007 and now account for 15.0% of units. Change on Albemarle Street has been relatively slower with a 42.1% decline over the same period.

■ Based on known refurbishment projects in the pipeline and future availability we expect fashion retailers and galleries will account for 43.6% of units on both streets by the end of 2015 up on the current 36.7%.

Taken from
Spotlight: Central London Retail - Q1 2015