Oxford Street’s retail vacancies now at 0.5% lower than pre-pandemic
Retail vacancies on London’s Oxford Street fell to 0.5% for the first quarter of 2025, the first time they have fallen below 1% since pre-pandemic (Q1 2019).
That’s according to London real estate company Savills, which says demand from international brands "remains robust", with research revealing 21 new international entrants that have opened or secured their first-ever London sites on the street in 2025.
Sam Foyle, Co-Head of Prime Global Retail at Savills, said: "Oxford Street is currently witnessing a significant uptick in retail activity, exemplified by IKEA's flagship opening, the redevelopment of the former Debenhams, and Nike’s RunTown experiential pop-up.
"It’s a really exciting time for the street. Brands are investing substantially into their stores and fit-outs, amounting to approximately £118 million over the past year, and this is set to keep growing as retailers recognise the exposure that Oxford Street continues to offer."
Marie Hickey, Director of Research at Savills, added: "The decline in vacancy rates reflects growing occupier confidence, but we anticipate a more measured approach in the months ahead as broader macroeconomic challenges persist.
"While this uncertainty may place pressure on future rental growth, demand for prime, best-in-class retail opportunities is expected to remain resilient."
As a result of the demand, the contraction in supply is "expected to exert further upward pressure on rents for best-in-class units".
Quarter-on-quarter prime Zone A rents for Oxford Street West have increased by 3.3%, and with improvements anticipated – such as the upcoming opening of the former Debenhams site – Savills says there is "potential for further growth in prime rents moving forward".
