The number of buildings on New Bond Street owned by big fashion houses has doubled in 15 years as they strive to secure spots on London’s premier shopping street.
A third of the Mayfair thoroughfare is now owned by retailers, up from 15% in 2009, according to CBRE.
Last year LVMH, which owns Louis Vuitton and Givenchy, paid £165m for 160-162 New Bond Street, W1, home to Dior, one of its labels. Rolex bought Bond Street House, occupied by Patek Philippe, for £160m.
CBRE’s Phil Cann calls it an “own-to-occupy” strategy. The fashion houses either buy the buildings they rent from the landlords or buy freeholds to other buildings to which they will move eventually. In many cases, they are happy to buy a block and wait years for existing leases to run out.
Cann said the deals would continue as fashion houses looked to “outposition the competition”. He added that retailers, which have traditional bought closer to the Piccadilly end of the street, would be drawn to the Oxford Street end due to the opening of the Elizabeth Line.
Twenty years ago “zone A” – the first 30 ft – of a shop on New Bond Street would rent at about £333 per sq ft; now it is upwards of £1,775 per sq ft. Several retailers pay more than £5m a year in rent.
