Oxford Street vacancies drop below pre-pandemic levels

The rate of vacancies on Oxford Street in London has fallen to 0.5%, the first time it has fallen below 1% since before the pandemic, according to data from Savills.

Savills attributed this to an undersupply of quality vacant space, noting that good quality retail space has become “increasingly constrained”.

The estate agent expects that this contraction will lead to an increase in rents for prime units.

Quarter-on-quarter, prime Zone A rents for Oxford Street West increased by 3.3%. With premium openings upcoming including on the former Debenhams site, Savills expects prime rents to continue to soar.

The street has seen demand from international brands remain strong, with 21 new international retailers opening or securing their first London sites on Oxford Street in 2025. Fashion saw the most new entrants with 11, followed by food and beverage brands, which account for six new openings.

Sam Foyle, Savills co-head of prime global retail, 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, 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.”