■ The transformation of these 'emerging' locations is highlighted by their strong rental growth profiles. The map below details prime Zone A rental growth per annum over the last three years for a number of key pitches in Mayfair's 'luxury quarter'.

■ All the 'emerging' pitches, bar Mount Street, have seen prime Zone A rental growth in excess of Bond Street. Dover and Albemarle streets have reported a 30.1% uplift per annum since Q4 2011, almost double the 16.4% reported on New Bond Street.

■ High profile openings on both Dover and Albemarle Street will further enhance their profiles as alternative luxury pitches, attracting further international retailer interest. This, combined with greater conversion opportunities at ground floor level, will place further upward pressure on rents.

CLICK ON IMAGE BELOW TO ENLARGE

Where next?

■ As these 'emerging' luxury destinations become established and availability more limited, retailers, galleries and restaurants will start to look to the next tranche of streets in the 'luxury quarter' for opportunities.

■ These 'future' destinations, some of which are detailed on the map below, are already on the radar for some due to their close proximity to established and emerging pitches.

■ South Audley Street, already well established as a retail location, is set to have its luxury fashion credentials boosted with the opening of the first UK Balmain and Erdem stores on the street this year.

■ Cork Street will see demand from gallery occupiers intensify as competition for units on Dover and Albemarle streets strengthens.

■ Overspill demand is expected to feed through to Maddox and Berkeley streets although rental growth is likely to be fuelled by high end restaurant lettings. For example, Alan Yau and his backers paid a reported £9 million premium for the former Automat site, which will also front Berkeley Street.

■ With Westminster Council 
reluctant to issue licenses on new sites, the competition for existing restaurant units within Mayfair is likely to remain fierce.

Taken from
Spotlight: Central London Retail - Q1 2015