Softening Rents in Bond Street or Just a Lull?

Posted: 18.09.2017

Jeweller Boodles has had its rent almost doubled at its 178 New Bond Street flagship store following a rent review.

Indeed, Bond Street retailers undergoing rent reviews have seen rents skyrocket over the last five years ago from a base when they averaged at around £950 per sq ft Zone A.

The proposed rent increase was contested and the case went to Arbitration which was handled by Independent Expert, Keith Whale. The new rent was awarded and set at £1.9m pa which equates to £2,100 per sq ft Zone A.

Although a substantial rise in rent, it is still below the record rent in the street, where Ralph Lauren pays £2,225 Zone A albeit it tallies with the letting to watch retailer, Hublot at 14 New Bond Street in June 2016, which at that time heralded and set the record for a rent at the new mark of £2,000 per sq ft Zone A.

Ashley Miller, Director at Marchmont Surveyors comments “New Bond Street, a place where rental records are always set, has proven to be one of the most prestigious and sought after retail locations in the world. The best of the World's retailers want to be here and will continue to bid competitively - the Award on Boodles should be seen in the context of their specific facts and to my mind is no indication of rents softening

SOURCE
Marchmont