Report | Intelligent Investment
Central London Retail Market Report H1 2026
September 16, 2026 5 Minute Read
Overview
Central London's retail market remained resilient through the first half of 2026. Supply continued to tighten on prime streets, driving rental growth, while consumer metrics held broadly in line with H1 2025 despite a volatile macroeconomic backdrop. The city also continued to attract international brands and flagship openings, reinforcing its status as one of the world's leading retail destinations.
CBRE tracks leasing activity, vacancy, and rental performance across 13 prime Central London retail streets.
Key themes from the report
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Selective spending
While consumer confidence in London declined during H1 2026 amid a volatile economic and political backdrop, footfall and tourism remained resilient and broadly in line with the previous year. We expect consumers to remain cautious in their discretionary spending over the coming months. -
Tight supply drives rental growth
Supply remains constrained, with vacancy rates at 4% or below across most of the prime retail streets we track, following strong leasing activity. Tight availability has supported rental growth on 64% of London's prime retail streets over the past year. Brompton Road recorded the strongest growth, with rents rising 31% year-on-year, driven by a series of flagship lettings between Harrods and Harvey Nichols. -
Strong leasing demand
Occupier demand strengthened in H1 2026, with CBRE recording 530 new requirements, up 60% on H2 2025 and equivalent to more than 2.2 million sq. ft. Requirements came from 27 countries, led by the US, France and Turkey. -
Investment softens, but confidence holds in core markets
Central London retail investment reached £329m in H1 2026, 60% below H1 2025, largely reflecting a lack of transactions above £100m. However, investor appetite for core West End assets remains evident, underpinned by strong occupational fundamentals and limited supply on prime streets.
Explore the full report
The Central London Retail Market Report H1 2026 features exclusive data on consumer confidence, vacancy and rental trends, occupier demand by country and sector, and investment activity across Central London.
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