Oxford Street vacancies fall below pre-pandemic levels
Vacancy rates on London’s Oxford Street have dropped to a historic low of 0.5% in the first quarter of 2025 — the first time they have fallen below 1% since before the pandemic
Vacancy rates on London’s Oxford Street have dropped to a historic low of 0.5% in the first quarter of 2025 — the first time they have fallen below 1% since before the pandemic, according to research from Savills.
This marks a significant recovery for the iconic shopping street. which was once plagued by empty units and discount stores. The decline in vacancies is attributed to an undersupply of quality vacant space, with Savills noting that good quality retail space has become increasingly constrained.
The contraction in available space is expected to push rents higher for prime units.
Quarter-on-quarter, prime Zone A rents for Oxford Street West increased by 3.3%. With major developments on the horizon — including the much-anticipated opening of the former Debenhams site — Savills anticipates further growth in prime rents.
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Demand from international brands remains strong, with 21 new international retailers opening or securing their first London sites on Oxford Street in 2025. Fashion has led the charge with 11 new entrants, followed by food and beverage brands, which account for six new openings.
Savills co-head of prime global retail Sam Foyle 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 £118m over the past year, and this is set to keep growing as retailers recognise the exposure that Oxford Street continues to offer.”
Savills’ director of research Marie Hickey 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.”
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