What: London's Oxford Street demonstrates significant revival with vacancy rates dropping to 2.2%, as the combination of new retail openings, the Elizabeth Line, and major development projects transforms the historic shopping destination.

Why it is important: The transformation demonstrates the resilience of prime retail locations when supported by a combination of public infrastructure projects, private investment, and innovative retail concepts.

Oxford Street's vacancy rates have reached their lowest level since 2017, with just 2.2% of properties available for rent, compared to nearly 10% in 2021. This recovery follows a challenging period marked by the closure of major retailers like Debenhams, House of Fraser, Topshop, and Gap. The street's renaissance has been driven by multiple factors, including the Elizabeth Line's debut and significant retail investments. Major brands such as Mango, Uniqlo, Under Armour, and Watches of Switzerland have opened or upgraded their stores, while upcoming developments from TK Maxx and IKEA promise further revitalization. The improved occupancy has enabled landlords to increase rents, with prime areas now commanding around £675 per square foot annually, up from £625 at the end of 2021.

IADS Notes: While vacancy rates have dropped to 2.2%, the lowest since 2017, major developments like Future Stores and the former House of Fraser's £132 million redevelopment are reshaping the street's retail landscape. The Elizabeth Line's impact and strategic openings from brands like Mango, Uniqlo, and IKEA demonstrate renewed confidence in this historic shopping destination.

Oxford Street vacancies at lowest level since before pandemic