Press Release

Once in a Generation Repurposing of Iconic Oxford Street

February 14, 2023

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Media Contact

Eleanor Dean

External Communications Manager

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Recent data gathered by global real estate advisor, CBRE, showed circa 3 million sq ft of retail and office space either in the pipeline or under construction on London’s Oxford Street.

Together, ten core developments are set to deliver 1 million sq ft of modern re-purposed retail, food and beverage, and leisure accommodation. This will transform the street and provide new flagship stores which are aligned to current retail requirements and increased interest from occupiers.

Retailers along the street will benefit from lower occupational costs following the recent Rating revaluation announcement, with CBRE’s research identifying a base rate fall of 40% for prime Oxford Street.

The improved occupational outlook has driven investor appetite for both Oxford Street and the wider London retail market. This renewed confidence follows recent investment transactions including the sale of four iconic London retail buildings. Selfridges Department Store on Oxford Street, Fenwick on New Bond Street, The Royal Exchange in the City and Foyles Bookstore on Charing Cross Road have all been purchased by international investors, bringing new capital to the sector from Austria, Thailand, North America and Germany. As a result, London retail investment volumes for 2022 totalled £2.7bn, according to the research.

The transformation of Oxford Street is well underway, and the scale of the development pipeline is a clear indicator of landlords’ commitments to investing in the street. The proximity of a new business district and Elizabeth Line access is set to significantly strengthen the long-term legacy created for occupiers, tourists and shoppers at the retail destination. With rebased capital values and the prospect of rental growth, the investment rationale for Oxford Street is compelling. As both occupier and investor confidence continues to grow, we anticipate a higher number of transactions this year.
Phill CannUK Head of Investment Properties
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About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm (based on 2024 revenue). The company has more than 140,000 employees (including Turner & Townsend employees) serving clients in more than 100 countries. CBRE serves a diverse range of clients with an integrated suite of services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.co.uk.