New research from Colliers shows that rental growth for shops in central London is at its highest level since 1998.
Dover Street has reported the largest growth in rents, rising 43% over the past 12 months.
The report also shows that retail space is at a record low, with some central London streets witnessing the sharpest fall in vacancy since Colliers began collecting data in 2007. Vacancy in the West End is down to 0.8% and vacant floor space is at 0.3%.
Colliers predicts that the development of 10m sq ft of space over the next decade will transform the retail sector.
But the report points to ways the sector is already evolving, with more international vendors entering the market. In Regent Street, close to 60% of units are now operated by international retailers.
