Fashion labels help boost commercial property in London W1

A new report published by global real estate firm Savills has revealed a 300 percent increase of fashion labels renting out space on Dover Street and Albemarle Street in London W1 since 2007, with the presence of designer brands such as Victoria Beckham and Alexander Wang increasing the areas profile.

The report found that the number of fashion stores on the respective streets from 2007 to 2014 has increased from 4 to 16, with the number on Dover Street rising from 3 to 10 and on Albemarle Street from 1 to 6.

“This increase in fashion retailers on Dover Street and Albemarle Street has predominantly been driven by availability constraints on Bond Street with brands looking to new pitches within the West End’s ‘luxury quarter’ to satisfy requirements,” commented Marie Hickey, director of research at Savills.

“This strong demand is made all the more remarkable by the fact that it picked up pace throughout the recession although it has intensified over the last 18 months. By the end of 2015 we expect fashion and gallery occupiers to account for 44 percent of units on both streets up from the current 36 percent with the greatest proportional changes expected to be on Dover Street.”

Savills report also revealed a 307 percent increase in rents on both Dover Street and Albemarle Street since the fourth quarter of 2008. Rents in Zone A increased from 135 pounds per square foot to 550-600 pounds per square foot.

This is four times greater than the 73 percent growth rate witnessed on Bond Street over the same period. The rent has most likely been driven up by the presence of high end designer labels, with recent deals including Victoria Beckham opening at 36 Dover Street and Alexander Wang set to open on 43-44 Albemarle Street.

“In the past Dover and Albemarle’s international status has lagged behind the more established Central London luxury pitches, however, international retailers now account for 30 percent of Dover Street stores and percent of Albemarle Street’s,” added Peter Thomas, director of Central London retail at Savills.

“The recent opening of Victoria Beckham will further raise the profile of the streets as prime London luxury locations and we expect this will be a catalyst for an increase in interest from international occupiers.”