Vacancy rates on London’s Oxford Street fell below 1% for the first time since before the Covid pandemic in Q1 2025, according to new research from Savills.
Savills’ data shows vacancy rates fell to 0.5% in Q1 2025 thanks in large part to a rise in leasing deals completed by overseas brands.
Twenty one new international brands have opened or secured their first ever London sites in 2025 to date, with 11 new entrants from the fashion sector and six new food and beverage entrants.
Zone A rents for Oxford Street West increased by 3.3% on a quarter-on-quarter basis due to the undersupply of good quality vacant space, and with further improvements to the street anticipated – such as the upcoming opening of the former Debenhams site – there is potential for further growth in prime rents moving forward, according to Savills.
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 £118m 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, added: “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.”
