News

Oxford Street retail vacancies hit 0.5%, lower than pre-pandemic levels

News

Shifali Gorka

22 May 2025

Retail

London, West End

While the quarter-on-quarter (QoQ) decline was relatively modest at 90 basis points, it reflects a growing shortage of available space, particularly as high-quality vacant units have become increasingly scarce on the street.

This contraction in supply is expected to place further upward pressure on rents for best-in-class retail units.

In Q1, prime Zone A rents on Oxford Street West rose by 3.3% QoQ and, with the opening of much-anticipated former Debenhams site, there is potential for further rise in prime rents going forward.

Demand from international retailers remains strong with 21 overseas brands having either opened or signed for their first London locations in 2025.

Of these new market entrants, fashion has been the most active category with 11 new openings, followed by the F&B sector, which has seen six new brands enter the capital.

Sam Foyle, co-head of prime global retail at Savills, 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 £118 million over the past year, and this is set to keep growing as retailers recognise the exposure that Oxford Street continues to offer.”

Marie Hickey, director of research at Savills, said: “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.”

Image: New West End Company

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Oxford Street, RETAIL, Savills

Oxford Street’s retail vacancy rate has fallen to just 0.5% in the first quarter of the year – the first time it has dipped below 1% since the pre-pandemic period in Q1 2019, according to Savills. While the quarter-on-quarter (QoQ) decline was relatively modest at 90 basis points, it reflects a growing shortage of available space, particularly as high-quality vacant units have become increasingly scarce on the street. This contraction in supply is expected to place further upward pressure on rents for best-in-class retail units. In Q1, prime Zone A rents on Oxford Street West rose by 3.3% QoQ and, with the opening of much-anticipated former Debenhams site, there is potential for further rise in prime rents going forward. Demand from international retailers remains strong with 21 overseas brands having either opened or signed for their first London locations in 2025. Of these new market entrants, fashion has been the most active category with 11 new openings, followed by the F&B sector, which has seen six new brands enter the capital. Sam Foyle, co-head of prime global retail at Savills, 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 £118 million over the past year, and this is set to keep growing as retailers recognise the exposure that Oxford Street continues to offer.” Marie Hickey, director of research at Savills, said: “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.” Image: New West End Company