Desigual smashes Oxford St rent record
Spanish fashion retailer Desigual has beaten off stiff competition for a key retail space on London’s Oxford Street, paying a record rent and suggesting that other retailers in the area may face sharp increases in their own rent levels. It has been clear for some time that retailers in the West End are enjoying buoyant sales, but this deal has nevertheless caused considerable comment and speculation.
Desigual is paying a Zone A (prime area) rate of just over £700 per sq ft for 360 Oxford St, a 7,000 sq ft site opposite the Bond St tube station, replacing the Disney Store which reportedly paid a Zone A rent of £540 per sq ft to landlord Prupim. The Sunday Telegraph notes that the new Desigual rent is well above the previous Oxford Street record of £615 per sq ft set by Sunglass Hut in 2009, and comes despite the economic downturn and worries about consumer spending.
The Sunday Telegraph says it understands that retailers on this key London shopping street have seen recent rent demands increased by 20%, while The Independent says shops on Oxford Street now face increases of as much as 40% in their rents as the Desigual deal will be used as a bargaining tool in future negotiations between occupiers and tenants.
Desigual is said to have beaten off three rivals to the site – Mango, another Spanish retailer; shoe retailer Aldo; and mobile phone group O2. The Disney store is moving down Oxford Street to a site previously occupied by fashion retailer Mexx.
