Hotfoots it to Mayfair - Mayfair Times

“The saving grace
for landlords is
that there is so
little new supply
coming through”
David Hanrahan,
H2SO
THE COMMERCIAL PROPERTY MARKET IS ALL
ABOUT OPINIONS AND GOSSIP. SO WHEN THE
MAYFAIR TIMES COMMERCIAL PROPERTY
LUNCH BROUGHT TOGETHER A DOZEN OR SO
OF THE MARKET’S MAJOR PLAYERS AND
THREW IN SOME AGENT PROVOCATEURS TO
STIR THE DEBATE, YOU WERE ALWAYS GOING
TO GET SOME INTERESTING INSIGHTS.
DUNCAN LAMB REPORTS
Working
lunch
It was perhaps apt that, having gathered for lunch in The Looking Glass Room at
Flemings Hotel, those assembled first reflected on the recent Alice in Wonderlandstyle
progress of Mayfair’s commercial property market.
For example, in what property market other than Mayfair – while the spectre of
the “double-dip” recession looms – could the demand for luxury retail space be
outstripping supply? Yet that is exactly what’s happening in Mount Street where
Grosvenor is revitalising the shops between Park Lane and Berkeley Square.
Grosvenor’s Director of London Retail Leasing, Helen Franks, reported that such
has been the demand for space from luxury retailers that rents have more than
trebled in the past four years. The street is now studded with international brands
such as Balenciaga, Christian Louboutin and Goyard. And there’s no sign of the
demand abating.
“At the moment I don’t have enough units to meet demand from the list of
tenants who want to acquire space on the street,” reports Franks. “In the new year
we’ll be focusing our attention on north Mayfair, around Duke Street and North
Audley Street. We’ve got some exciting opportunities around those streets.” Look
out for a handful of new major luxury brands to make their Mayfair debut shortly.
CBRE’s Head of Retail Research, Mark Teale, confirmed that the upward trend
has not been restricted to Mount Street: “Demand in Bond Street has been very
strong even in the past two years. A weak pound has attracted foreign tourism
which has boosted shopping levels, but there’s very little supply of new retail space
which is why new areas – like Mount Street – are progressing so well.”
While the top end of the luxury retail property market may have been insulated
from economic strife, no one could say the same about Mayfair’s office market.
“At the moment I
don’t have
enough units to
meet demand
from the list of
tenants who want
to acquire space
on the street”
Helen Franks
Director of London
Leasing, Grosvenor
59
commercial property