Thought of the Week
Oxford Street reimagined: How pedestrianisation will transform London’s iconic high street
October 10, 2024 3 Minute Read
Last month the Mayor of London, Sadiq Khan, announced refreshed plans to pedestrianise Oxford Street. This is not the first-time plans have been brought forward. In fact, the first proposal was in the 1960s, with aspirations to create pedestrian walkways that sat on top of podiums as traffic flowed beneath. Today’s plans may be slightly more modest but will transform the one kilometre stretch between Oxford Circus and Marble Arch and is expected to lead to the redirection of around 16 different bus routes.
Estimated to cost £150m, the ambitious plans will be funded through a mix of local businesses, new revenue streams, and private funders.
Nestled in the West End of London – an area which accounts for 3% of the nation’s economic output – Oxford Street is one of the world’s most famous high streets and a global icon. In 2019, the street alone accounted for 5% of the capital’s economic output, underscoring its vitality.
Although it has faced several challenges in recent years such as the closure of Debenhams and House of Fraser, the rise in vacancy rates and the proliferation of American shops – the tide is turning for the street. The two former department stores are being redeveloped into new state-of-the-art office, retail and leisure spaces, better suited to current occupier demands. Brands such as House of CB, Jack & Jones, Space NK, Abercrombie & Fitch, TK Maxx, and Holland & Barrett have all recently decided to expand their portfolios on the street. And the highly anticipated IKEA store is set to open at Oxford Circus in Spring 2025. With this in mind, Oxford Street’s current vacancy rate is estimated to be less than 5%, and the underlying availability (i.e. units being actively marketed) is now sub 10% – significantly below where it was this time last year.
The renewed aspirations to pedestrianise parts of Oxford Street will further support this positive momentum. Currently welcoming over 500,000 visitors every day, it is hoped that the updated plans will further boost footfall to the area. And with additional placemaking features such as planters, trees, water features, and seating, dwell times should also improve. Previous CBRE research has shown that such changes, which not only help improve the safety and connectivity of an area – but also add to its comfort and enjoyment – support the long-term value resilience in real estate. Plans such as the one suggested by the Mayor of London could support the restoration of the area’s historic character and enable it to “once again become the leading retail destination in the world”.
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