Recent demand in food and retail offers has pushed rental levels on Baker Street, W1, to a new high of £265 per sq ft – a 38% increase from the previous high and a record level for the area.
According to Knight Frank research, near zero vacancy rates and high rents on nearby Marylebone High Street, with the improved profile of the area for office occupiers, have led to retailers locating on to Baker Street.
Over the past 12 months Baker Street has seen record-breaking rents and premiums being paid in order to secure sites for both food and retail.
Knight Frank suggests this pattern is unlikely to change. Japanese food chain Itsu recently broke the rental record by paying £265 per sq ft for its second restaurant, narrowly beating fellow sushi chain Wasabi.
The research estimates that roads closest to Baker Street and Marylebone High Street, such as Marylebone Road, Paddington and George Street, W1 are all expected to see a dramatic increase in retail activity, benefitting from the overspill of occupier demand.
Josh Braid, associate, Knight Frank Retail team, said: “Baker Street is experiencing an exciting new phase of Central London retail activity, and the rapid increase of grab ‘n’ go operators, due to the overspill effect from traditional prime streets.”
