Grosvenor's Mayfair/Belgravia vacancies drop to under 1%
It’s going to be tough securing Grosvenor-owned/operated retail space in London’s high-end Mayfair and Belgravia. The property landlord has said the vacancy rate in the area fell to just 0.8% at the end of 2022. That compares to a Q3 Prime West End average of 11.3%, according to Savills, and UK average of 13.9%, according to the British Retail Consortium.
Grosvenor puts the success rate down to “creating a suite of innovative products and programmes to support the 500 retail and hospitality occupiers in its historic destinations”. This includes green leases, a ‘Simplified Lease’ that takes just 72 hours to agree and a Tenant Investment Fund to directly finance growth.
“This has supported the success of its occupier partners post-pandemic and brought new brands to the portfolio”, Grosvenor said.
Over the last 12 months, 45 new brands have opened in Mayfair and Belgravia including Apricity, With Nothing Underneath and Mr Fogg’s Apothecary with 24 brands also choosing to renew their tenancies. Excluding strategic voids and units already under offer, vacancy at 31 December 2022 stood at just 0.8% across the portfolio.
In addition to new products, Grosvenor also said it has executed a significant programme of activations to support the reputation of Mayfair and Belgravia as destinations.
In June, the two-day Mayfair Jubilee Street Party saw footfall boosted by 12,000. Belgravia in Bloom and The Mayfair Maison, a pop-up boutique selling unique collection pieces, were also key successes driving footfall and destination spend.
Joanna Lea, Director of Retail at Grosvenor, said: “Our goal is to make the selection of property partner as important to a brand as location and rent. We’re working to achieve this by acting as a business partner to brands rather than a passive provider of space.”
Lea added: “We are very mindful of the outlook for 2023 and continue to look at ways of supporting occupier success. Reducing the time and cost involved in setting up shop is an issue that often arises for both smaller and larger business. Our Simplified Lease has made a vast improvement to this, with the new digital platform set to make it even easier, ultimately allowing occupiers to get in, up and running faster.”
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