Retail rents look to have peaked on Oxford Street.
H&M Hennes is paying £470 Zone A for a 1,672 sq m (18,000 sq ft) unit in Sears’ redevelopment of nos 360-366. The shop, taken on a 20-year lease, is H&M’s third on Oxford Street.
“Oxford Street has peaked,” says Andrew Bradley, partner at Hartnell Taylor Cook which is advising Hennes – trading as H&M – on the acquisition. “Since the Disney deal was done, in the past six months, rents have come down by up to 10%.”
In the middle of last year, Disney agreed to pay £5,651 per sq m (£525 per sq ft) Zone A in the same scheme but central London retail agents warned that rents would not be sustained at that level.
H&M is combining two units in the Oxford Street scheme. It is currently looking to expand and refurbish its two stores on Oxford Street.
It plans to open up to 10 new units this year, including a flagship store in Milton Keynes where it is currently looking at sites.
Healey & Baker and Dalgleish & Co represent Sears on the Oxford Street scheme.
EGi News 18/01/99
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